>> dick's. >> liz >> financials. >> doc >> skillz, bought upside calls now. >> okay. joe terranova, finally >> forttinet >> i appreciate it we are holding on to gains across the board the record setter, been a big run for stocks it does it for us. "the exchange" begins now ♪ >> thank you very much, scott. hi, everybody. i'm kelly evans and here is what is ahead a melt up or a cooldown? investors are driving stocks in crypto to all-time highs but bond yields go the other way our guest says there will be one big winner from the search for yields and higher taxes and reveal what it is. plus, payments, popcorn and space. we have the action, the story and the trade on paypal, amc and virgin galactic ahead of tonight's earnings survey says elon musk will sell 10% of shares after a twitter poll voted for the move. we will look at what else could be driving the move and what it will mean for the stock going forward. before all of that let's begin with today's market with

dominic chu. >> a little bit of up and down today, kelly we are near record highs, maybe no surprise there. as you can see we've seen a bit of the momentum come out of the marketplace intraday at one point we were higher across the board, we are now higher across the board again, but at the highs of the session, the s&p 500 was up about 17 points 17 handles down about three points at the lows of the session. you can see here we are tilting towards the lows of the day so far right now, just barely positive for the overall time being. 4697 for the last trade in the s&p, and the nasdaq pausing at 15,997, the last trade there one place seeing momentum in particular, stop me if you heard it before. computer chip stocks are hot and it is playing out again today. advanced micro the best performing stock in the s&p 500 today by a wide margin on news it signed an agreement with meta, the company formally known as facebook, to help provide chips for some of the data

centers. announcing new products as well. that has advanced micro, a huge surge there. you see the white line over the course of the last couple of months al both of these stocks get gold stars because they hit record highs in trading today we will see if the momentum in some ways can cool off it has been a hot part of the market, gives some traders caution about the overall sector right now. then another part that's been hot as of late, cryptocurrencies we did see a record high today for ethereum ether token coins up about 4% right now, 4786 the last trade there. bitcoin almost near a record high as well, just below 66,000 where we see right now coin baste, up right now micro strategy owns bitcoin on the balance sheet. some green in the market space, but a lot of traders wondering whether or not a cool-off is

coming due some time soon. back to you, kelly >> thank you very much as he mentioned, stocks are higher today but on a five-week winning streak as risk appetites swell. mike santelli joins me with a look at what history has to tell us about runs like this. >> right first off, they're relatively rare for the past four weeks, up 1%, only about halfa dozen times previously in the last 12 years. all of the numbers you can crunch talk about how statistically stretched the market is. it comes down in a similar place, which is that it would be typical for the market to flatten or give back some of the gains, or if it ground higher from here. still maybe the gains don't stay in the books for long, but it almost never ends this way in a major peak in other words when you are one of the persistent rallies it tends to be in the midst of a bull run and not at the end. now, we have some very hot momentum readings right now, the kind we saw, let's say, last july or april, also an area where the market flattened out i would say we have this blend

in the market of leadership from the substantive and the silly. substantive being cyclical stocks, transportation, some of the semis, consumer-related and all of the other things that are beneficiaries of a strong economy. that's a good message that you kind of pulling from the market. the silly is this aggressive momentum moves in certain kind of cult names, i would argue, in some of the no-profit tech stocks that started to run again. that's kind of bull market activity, but also has to put you on a little bit of an alert. the question is how much of the standard expected fourth quarter rally fuel have we burned up already. it is unclear. you never know for sure. i would say the market laughed at these types of over-bought readings in 2017 and barrelled higher to get to a more over-bought state in 2018 before a tough year there's no script here, but the risk/reward has come more in balance i think rather than a month ago where it looked like it was a pretty goodbying opportunity. >> statistically stretched like you said, we have

experienced these. even the end of last year, mike, i remember watching tesla and the others rise and it is often the behavior did we bring it forward i guess we will ask. michael santoli at the ncse. my next guest says the chip shortage and other supply chain snags could start improving as manufacturing in asia is picking up joining me is mark smith, wells fargo advisor, senior vice president of investments great to see you again let's start with the semis is improvement there a bad thing? in some ways has the squeeze been driven by the shortage? >> yeah, thanks for having me on, kelly. i think that the semis are looking really good because you have all the different semiconductor companies from all over the wrlorld on the same pa and producing all over the world. we are actually seeing that many of the companies who are requesting chips are getting

them that is great for going into the christmas season when you see november and december has historically been truly amazing for the markets historically now you have a trillion dollar package going into infrastructure, which directly goes into middle class homes you have to remember that. most folks who are going to get that trillion dollars are folks who are blue-collar workers who will go out there and be paving these roads, doing these bridges, and that's going directly into the economy. so what you have got with the chips out there and they're getting into cars and tvs and all of that, and then we have a holiday season coming up, it could make for a tremendous holiday season this year because, remember, last year we were all at home and now we will make up for it this year in 2021 >> do you thinkthough when we look at the smh, the leading etf here, i believe going into the pandemic was around 140, which was a considerable rise in the previous few years i don't think we are quite at 300 but it is starting to look close. in other words we have kind of

doubled in 18 months is that going to be permanently sustainable? i mean look at nvidia. it is now one of the largest companies in the world, so maybe the answer is yes. but i guess if you are buying here, you would have to say there's not going to be a reset like there was with lumber, for instance >> yeah, i think that that's absolutely right i think that the demand is going to continue. you really can't get away from any of these chip makers, and no matter what you buy, whether it is a cellphone, a watch or a thermometer for your turkey for thanksgiving, you are going to have to use these going forward. so i think that there's still a lot more upsides, kelly. >> we are over 300 as we show the chart there, 302 for the smh, which is an incredible run. let me ask you broadly about the area you think could be a big beneficiary of the tax rises we are likely to see into next year but also the chase for yields because one thing we haven't talked about is the fact that bond yields are sinking in this environment. what do you think the big beneficiary here could be? >> the big beneficiary i think

is going to be in the municipal bond sector. the reason for that is that folks, especially my clients, are asking me, mark, how could i get tax-free income because taxes are only going up? you are going to see them reset january 1. so with all of this money that is going out into the system from the feds, you have got to have taxes go up so my clients are asking where the opportunity is to get tax-free income. it is in the municipal bond sector you will see with the infrastructure deal that just came out, you will have states all over the country partnering with the federal government. you are going to give me a dollar, let's match you a dollar that's going fob great for municipal bondholders because you will see more inventory and i think there will be a huge appetite in 2022 >> i don't know if people are asking you day-to-day, but what do you tell them when they say why is the ten-year still at 1.5% >> well, the fed is making sure it stays that way for sure, right. so that is, i think, great policy because it is going to continue this growth momentum we're seeing in the markets. we are talking about five weeks upward momentum.

the fed is making sure that keeps happening. you are going to keep having really low interest rate environments for the foreseeable future until unemployment has reached the maximum potential according to, you know, chairman powell, and it looks like he probably will stay in office so we are going the see a lot more of the same, and i would just say that if you are not in this market right now, you might be missing out for this last fourth quarter because it could be one of the best fourth quarters we have seen in a while. >> that was going to be my last question based on what we were talking with mike santoli a moment ago, do you think that this run-up into year-end has been pulled forward or not >> i don't think so because you are starting to see the rest of the world come online. the u.s. has done a great job with giving out vaccines and getting all these different antivirals out there the rest of the world is now just coming back on. you are seeing places literally just open up in the last 30 days so i think there's a lotmore room to run because that's going to help the u.s. economy as well

when you see the rest of the world come online. you are seeing probably even, you know, airbnb, their numbers were great, and they're saying latin america is picking up. you will see europe pick up and asia so i think there's a tremendous amount of upside because the u.s. has gotten us to this point and now we are bringing on the rest of the world with the reopening trade. i stay in this market. >> great way to put it mark, always good to check in with you thanks for your time today >> thank you, kelly. >> mark smith with wells fargo advisers just got an interest inthree-year bond. what is going on there >> reporter: it is the first of 120 billion in supply from the treasury and three-year notes, 56 billion of them the price, the yield was.75, three-quarters of 1% it didn't price well, meaning the when-issued market was lower than yield so higher yield is lower price, but what we did see is two categories that really excelled. indirect bidders, which you always question because foreign

buyers are very important right now considering how many negative yielding securities there are. that component was at 57.6%, the highest since november of '17. get this the dealers always get what is leftover so after the buffet table is gone over by investors and they do what they want to do, they purchase what fits their needs, what's left goes to the primary dealers. that amount was the smallest amount going back all the way to november of '09, 24.3% that's the interesting part of this auction so we should pay attention because the short maturities were the beneficiary of a lot of selling that flattened the yield curve. then our fed, of course, concentrated on the taper. bank of england didn't raise rates. they may have used this auction to buy back some of the shorts >> very interesting. some big superlatives for what is usually a boring three-year auction, if you will forgive me for saying that. rick, thank you so much. good to see you. >> no, absolutely.

>> rick santelli out of the cme. coming up, heavy on stock, light on cash. elon musk asks the twitter verse if he should sell 10% of his tesla shares, and they said yes sending the stock lower from here what was the driving force behind his move? plus, cashless cinemas and the cosmos we have the story ahead of three key earnings from paypal, amc and virgin galactic. can amc deliver for the aprils and can virgin galactic lift off again after being grounded stay with us this is "the exchange" on cnbc

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♪ welcome back elon musk letting the people decide what he does with some of his tesla stock, running a twitter poll asking whether he should sell 10% of his stake the people voted yes, which is probably what musk had been hoping for in the first place. joining me to explain is robert frank. robert >> well, kelly, you might say elon musk knew what the outcome of this poll was going to be because regardless of the results he was going to have to start selling millions of shares, and the reason is a giant tax bill in 2012 he received a compensation package that granted him options on 23 million shares the options expire next august, so he has to use them or lose them in the next nine months now, when he exercises those options, he also has to pay a

tax. now, the taxable gain on those options and shares is over $28 billion based on today's share price. now, the combined federal and california tax bill on that gain could be up to $15 billion now, he can't borrow that much to pay the irs he already has 92 million shares pledged as collateral against personal loans and lenders wouldn't likely take a risk that large, especially on a volatile stock. so he has to sell shares as part of the options exercise. now, if he sells 10% of his holdings as he's promised, he raises about $20 billion in cash that enough to pay the irs and to give a little to the charity, which, by the way, would also help offset and lower that tax bill $15 billion might end up being the largest tax bill ever paid in the u.s., but he's still going to come out way ahead. he will gain about 10 million shares in the company even after the sale and the transaction,

and he's currently worth about $340 billion, a number that will go even higher after the options and the share sales. so, kelly, the government gets $10 billion, california gets $4 billion or $5 billion, elon gets more shares and more paper wealth everyone wins. >> if i'm understanding, right now he owns roughly about 20% of tesla. what will that proportion look like into next year? >> well, if he exercises these options, he basically gets another -- it depends how much he sells and what the share price is and how much he has to sell, but he will end up probably with another 2% or 3% with those additional 10 million shares so he will be at 22%, 23%. remember, this was the first compensation package he got another one in 2018 that's even more options than these, and he will have to pay those taxes in 2028. so we will be doing this story

again in about seven years >> yeah, i think it will help the cbo when scoring the bills robert, thank you very much. >> that's right. >> we appreciate it today. robert frank my next guest says while it was a bizarre soap opera, dips are buying opportunities in tesla and musk's sale is digestable he raised the bull price target to $1,800 per share. joining me is dan ives with web bush dan, welcome robert answered a question which is there a risk of musk voluming less of the company in the future it sounds like he will own more of it. >> yes, he will own 23% to 25% of tesla going into this, investors thought he would sell potentially 5%, 6% of his ownership just given the tax bill coming due. 10% and, of course, the bizarre soap opera poll over the weekend, that's just another chapter for musk i think at the end of the day it continues to be a containable amount still a blip on the radar.

>> he had even more bizarre tweets many would say raise the risk of regulatory crackdown at a time when full self-driving cars on the streets for regulators to crack down at any time if they want to, but it is his advertising genius he talks about how he can sell the cars for less because tesla doesn't have to advertise. >> this is a company that doesn't formally advertise part of the cache is musk and that's how tesla built the brand globally what you are seeing now in terms of the stock, it is just more and more of that adoption. i think hertz, uber as well as just the margin story from qqq those are the two linchpins that obviously ycross the trillion dollar mark but i don't believe it stops here. i believe part of the green tidal wave, tesla in the early innings of playing out i think that's why more investors continue with a strong appetite for tesla shares like you are seeing today, despite the bears yelling fire into a crowded theater. >> down less than 3% at this

point. what is the multiple in the earnings power now that you see it under each $100 or at some point is it not relevant because this stock is sort of deciding its number for you i mean the $1,500 price target itself was the bull case a couple of weeks ago predicated on pretty strong earnings per share and a pretty high multiple as it is how do you get to $1,800 >> i think you have to look at some of the parts. when you look at the transformational growth stories, the amazons and netflix and, of course, tesla, looking near term at earnings i think you don't see far through the trees. i view some of the parts i think china alone is worth potentially $300, $400 to the story. you look at what will be a $5 trillion market they own 80% of, this is a company into the next years -- i think ev, could it go from 3% of automotive to potentially 10% in did next two to three years that could be $25, $30 of earnings power for tesla that's why i believe it is a

name, we saw a tipping point the last few weeks you see it in the stock, but i don't think it is really a pull forward. i think this is just starting. i think the next phase of the tesla bull thesis. >> finally and quickly, is there anything musk could do with the shares or sort of with tesla that would alarm you from, you know, the standpoint of reaching those objectives you just described? >> well, i think right here it just needs to be containable i mean everyone knew about the august expirations, so 10%, that's containable if it starts to be more of a cascade and more selling, that could create more of a negative. but for right now, we continue this as a name that has significant upside into next year as part of what we're seeing in ev i think tesla continues. right now at least in ev land, it is tesla's world, everyone else is paying rent. >> it is just shy of $1.2 trillion as we're here chatting. dan, thank you for your time today. >> thank you >> dan ives on tesla still ahead, the ceos of

pepsi and unilever talk about how climate change is disrupting the supply of things consumers need and plans to fix it plus, time for a slow down time shares slowed down as the pandemic soared. we will talk about it as profit jumps and sales triple stay with us y keep you tuned in all day long. so when something happens that could affect your portfolio, you can act quickly. that's decision tech, only from fidelity. you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire if you're 55 and up, t-mobile has plans built just for you whether you need a single line or lines for family members, matching your job description. you'll get great value on america's most reliable 5g network.

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♪ music ♪ ♪ dream, dream when you're feeling blue ♪ ♪ dream, dream that's the thing to do ♪ ♪ music ♪ when you see value in all directions, you add value in all directions. accenture. let there be change. ♪ this second week of the cop26 climate summit is underway and it is the corporations talking about how they have to adapt their workforce and supply chains in the face of global warming. dana olick is in glasgow with a look how pepsi and unilever are

privating. diana. >> reporter: it is one thing to talk about reducing emissions to slow global warming, but global warm sing here and corporations need to adapt and make themselves resilient from the built environment to the products they sell i spoke with the ceo of unilever which makes over 400 products globally he said the companies history in dealing with global disruptions positions well for climate-related supply chain disruptions. >> it is in our dna to be able to deal with these types of crises what it does is it puts a premium on speed of adaptation so i think every major business was tested by covid. planning became less important than speed of response, and i think the same will be true on the challenges to our supply chain that come from climate change resilience, adaptability >> reporter: adaptation, resilience and getting to net zero will cost companies, large and small, like pepsi, which pledges to be net zero by 2040, but its ceo says rather than a

green premium it will lead to green profit >> i think this is a major growth opportunity for pepsi co. if i can get my consumers to prefer my brands because i am somehow more environmentally friendly and i can convince them that that's the way they want to live their lives and make their choices, i am going to be very successful i think growth is going to be my big reward to shareholders for investing in pepsi. >> reporter: in a speech here earlier this afternoon former president obama told a cop audience more than one-fifth of the world's largest companies have set net zero emission targets. quote, not just because it is the right thing to do for the environment, but in many cases because it makes sense for their bottom line. kelly. >> absolutely diana. thank you, diana olick one of the sticking points in this transition to a carbon-free economy is the cost. according to a recent report it

is expected to cost around $4 trillion a year. the "wall street journal" said despite the huge number joining it won't be as hard as everyone believes joining me, greg, i love this quote from brian menouoynihan. >> we know if there's a profit wall street will jump in there and the money comes like water, right? let's break down the $4 trillion number you cited from international energy agency. that's a figure they expect we'll need to invest by the end of the decade to achieve the net zero target. sound like a lot of money? if you look at it relative to gdp and subtract what we're spending on gdp, for the united states it comes to around 1% of gdp. we have increased investment by that much many times in the past, roughly the scale of the internet boom, roughly the scale of the housing boom in the

2000s. the key here isn't finding the money. there's no shortage of capital it is there's a shortage of projects to invest that capital in even that is starting to change. >> yes >> so as, you know, you had allan japon on a few minutes ago, he talked about setting an internal price at unilever at $50 a ton, that creates a pool of capital that generates revenue streams out there in the venture capital environment to say, hey, that's a demand we should try to invest in to meet. >> probably it is the biggest change over the past couple of years, and i guess the most important question i could ask you would be how much of this funding is coming from the government versus the private sector if the incentives are now in place, can it all come from the private sector so it doesn't have to come in terms of higher spending, higher deficits, higher debt? >> absolutely. in fact, all of it can come from the private sector in the case of the united states it is easy because, for example, most of the utilities are investor owned abroad, a lot of those are state owned.

of course, some of that will have to come from state budgets. keep in mind we are talking about investment in the true sense of the word. it is not a cost the way, for example, fighting a war is a cost it is an investment in the way that you put in money and get a return when you invest, for example, in an electric car, power plant or power transmission line you get a stream of revenue over the next 40 or 50 years. what is forgotten is renewable energy has low ongoing operating cost because there's no fossil fuel stock to go into it the key is overcoming the initial very high fixed cost necessary to get the investment in the ground and get the manufacturing scale economies down >> and the price plunges over the past decade made it all the easier, lowest cost of capital can be debt financed, more reliable go ahead, greg, you are the one who has to go. >> yes i want to make one final point because all today we have been talking about tesla, haven't we? a $1.2 trillion company that no longer relies on federal subsidies. people want to buy those cars, not because it makes them feel

good in an environmental sense but because they're incredibly high-performing cars just in the five or six years it has taken for tesla to achieve what it has done, it has proven you can make money on an electric car and forced everybody else, all of the other car manufacturers to follow suit it is not enough we have so many hard-to-decarbon item sectors like steel, cement and aviation where we are still on the high-cost part of the technology curve, but the fact we are talking about tesla the way we are today i think is evidence enough that if you can make that, put the technology there and if you can get the incentives there the capital will come enthusiastically to finance the transition >> well-said a banner day for that in fact. greg, thank you so much. we love having you >> thanks, kelly coming up, the rally in amc seems unstoppable as the reddit crowd continues to bet on the comeback darling will any have their diamond hands turning back to coal we're back in a moment

we now find that 85% of individual investors are interested in sustainable investing. among millennials, the interest is even stronger. ♪♪ one of the big trends in sustainable investing is data, and the ability to understand how sustainable your investments are. by taking that information into account, investors can make better decisions for the long term. sustainability is not about one number. it's about variables like water usage, data privacy, consumer trust, diversity, land use and conservation. all types of investors are now considering this in their investment decisions. this is not niche. one in four dollars globally is following some form of sustainable investing. with sustainable investing at this scale, there's power to change the markets and have an impact on the issues investors care about most. i am courtney thompson and we are morgan stanley.

♪ welcome back, everybody. we've given up our gains today dow was up 237, now up 44.

the nasdaq is up 37 and the s&p is up 3 right now. heave are some of the movers this hour. the infrastructure etf ticker pave is jumping after the passage of the infrastructure bill this weekend. 550 billion is the new spending. some of the top holdings include nucor, vulcan materials and united rentals alphabet joining the $2 trillion club this morning. it is amazing. let's look back at the market cap just below the marquee level, the first time for google joining microsoft and apple, which those two are around $2.5 trillion stocks. it is the fifth straight day the stock is higher, an all-time high, of course, up 70% this year meanwhile, peloton continues its decline. it is the worst performer in the nasdaq today look at the shares, down 7.7%. they're now down 45% for the week peloton back around 51 over to tyler mathison for a cnbc update. >> i have to do a 45-minute hidden hills later today to get the stock back up.

let's tell you the news at this hour police in missouri arrested a man they believe shot and killed six people across two states perez reid has been charged with two kountsd of first degree murder police sources say they recovered a pistol they believed tied to all six killings when reid was arrested. on the news tonight, how police tracked him down and what similarities the cases share that's tonight at 7:00 eastern time, ""the news with shepard smith"." covid infections in germany hit a record high on the same day that vaccinated travelers from germany and many other nations can resume visits to the united states. german officials call it a, quote, pandemic of the unvaccinated in france, covid hospitalizations have hit a one-month high a new study shows it is the type of fat and not the amount that may be the biggest factor in increasing the risk of strokes. you guessed it meeting more animal fat is tied to higher stroke risk while those eating more vegetable fats

have a lower stroke risk the findings have not yet been peer reviewed. kelly, back to you >> that's a relief i can ignore it then >> yeah. >> tyler, thank you. see you in about half an hour. still ahead, paypal has only missed on earnings once over the past 16 quarters, but with the street expecting numbers in line with guidance, will the streak be disrupted the amc aprils are gearing up for results but the theater chain awarned last quarter of challenges ahead virgin galactic expected to report a loss after delaying the commercial program a few weeks back shares are down 15% over the last few months. that's all up next ll, mary? hey... it's our former broker carl. carl, say hi to nina, our schwab financial consultant. hm... i know how difficult these calls can be. not with schwab. nina made it easier to set up our financial plan. we can check in on it anytime. it changes when our goals change. planning can't be that easy. actually, it can be, carl.

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welcome back to "the exchange." the earnings exchange, everybody. earnings season is beginning to wind down, but some big meme stocks report after the bell in this edition of mfrp earnings exchange" we will bring did action, the story and trade on

paypal, amc and virgin galactic. paypal is down 35% from the 52-week high shares took a dive on reports that it was considering buying pintrest last month. paypal shares, get this, are negative on the year they're under performing square is up about 10%. kate rooney here with the story. steve grasso, ceo of grasso global and cnbc contributor will give the trades today. kate, first to you what are you watching for? >> today rates are big here, but if you look at 2020, kelly, it was a massive year for paypal. you mentioned square as well those stocks are really seeing a bit of a hangover right now. both are negative to start -- or to -- year-to-date right now we are entering a period of tough comparisons. i have been talking to analysts this morning they say it may be double digit growth but nothing compared to what they saw in 2020. watch the take rate essentially, the percentage of the transactions of paypal gets to keep as revenue. that percentage has come down

since 2019 estimates for today around 2%. so the question for analysts, can that offset a potential slowdown in revenue. revenues also big, analysts predicting lower revenue compared to the q2 levels and potential slow down in ecommerce. if you look at some of the web traffic to some of the partners there and just their ecommerce traffic in general, headwinds as well from the ebay spin off. you remember q2. dan schulman talked about that being a surprise to them and ebay spinning off faster than expected analysts are really waiting for that to be fully flushed out finally mna. we talked about pintrest when it came out they said it is officially off, they're not buying pintrest. we may get more clarity on the company's acquisition strategy will they shop elsewhere social commerce has been huge so will they still look to integrate it and maybe buy another company or build it themselves >> right steve, it was a fascinating chat a couple of weeks ago with an analyst that say the biggest

problem for paypal is they're not in the physical world. he wants to see it used more at point-of-sales transactions. i was thinking about it as more digital wallets are rolling out the capability, if they don't roll it out quickly they could be missing the boat. he wants them to do a boring acquisition of like a payment processor. is there any chance you think they would go in that direction or should? >> well, i actually agree with that when the pintrest rumor came out, i thought they would have been better off doing a more traditional payment processor. but in kate's report she came up with a bunch of negatives there. if you look at the stock, your lead into it was the stock that is known for beating estimates and actually having a perfect or near perfect earnings report record but when you look at the stock itself, kelly, we are trading at roughly $229 support in the stock has been around 223 to 225 for the entire year up and down.

but what the stock has going for it is that it sold off 16% on those pintrest rumors. so it leaves a lot of runway to move higher. if you want to buy it, use 223 as your exit because if it doesn't hold 223, kelly, it drops down to around $200 give or take and then the next stop is $190. $223 is crucial level. >> it is at $228 right now, giving it a forward p/e around 245. kate rooney watching paypal's results tonight. moving on to amc, higher by nearly 2,000% this year, 42% off the two-week high. unlike game stop, going in all in with the trading base with the ceo shouting the aprils out occasionally announcing plans to accept crypto for tickets let's bring in julia boorstin. how much do the old-fashioned earnings numbers matter here >> i can't tell you how much the old-fashioned earnings numbers will impact what happens with the stock because it is such a meme trade, but there are so

many questions about the fundamentals of this company i mean if you look at just what is expected for third quarter results, the company is expected to report over $700 million in revenue. for the fourth quarter, which is more important in terms of the films to be released it is expected to report $1.1 billion in revenue but it is still losing money, estimated 53 cents per share loss but there are fundamental questions we don't have answers to yet one is whether audiences will ever come back to theaters in the same numbers they did before the pandemic and also how much all of these new business models around film releases such as simultaneous releases and a shortened release window will fundamentally impact the movie-going audience going forward. >> steve, what would you say for the trade here >> yes so i think you hit it on the head do fundamentals matter of course they don't in a stock like this. but having said that, the fundamentals have gotten better. to julia ace point, if you go back to q1 of 2019, revenues

were around $1.2 billion we're flirting with that area now. but it is not about fundamentals it is about can they keep feeding the news cycle to create fodder to keep the meme stocks status going i don't believe anyone is excited about a retail location that's going to be essentially a candy store, but i will tell you that the mobile delivery of it doesn't bother me at all i think you just have to give them a little smoke and mirrors, and i mean that in the kindest of ways, while the fundamental balance sheeting starts to improve or continues to improve. >> julia, what would you add to that >> i would just say we have to see what happens with film releases i think that there is a sense of momentum going into the holiday season all of the facts around vaccines and different treatments for covid do certainly bode well for the industry, but there's also a sense that theaters are going to have to invest in really making that experience feel different than watching a movie at home,

which means they have to spend a lot more money to improve their actual physical theaters and the different bells and whistles, things like alcohol and fancy food they can offer. >> serving it at a time with a historic labor shortage. absolutely a lot of changes. thanks, julia boorstin let's look at virgin galactic, poised to report a second quarter with any revenue. shares back to earth last month after they delayed the start of commercial space travel to late 2022, down more than 17% year-to-date morgan, such a busy space with so much excitement this year let's talk about what you think is important to watch in this earnings report. >> yeah. i think the big thing to watch is going to be revenue as you mentioned. this will be the second quarter potentially where you are seeing revenue growth year on year. here is the key. after q2 earnings, which was also in the midst of that major space flight, that test flight for virgin galactic in which the founder of the company was on board as well, got so much attention, triggered a $500

million share sale as well you saw ticket sales open, and open at significantly higher prices so starting at $450,000 a seat, which is about double what the first 600 people in the backlog right now, looking to get on board virgin galactic space flights in the future, actually paid that is going to matter. also, the fact that the path to profitability really hinges on commercial service starting. as you just mentioned, that continues to be pushed back. we are now look inating at q4 o2 and a revolutionary flight involving the italian force that was pushed back to the middle of next year as well. what does the cash burn look like in the meantime >> you're reminding me it is a misnomer to call it an earnings report it is a revenues report. we know that much. steve, what about you? we know it has been a battleground stock we talked about? >> believe it or not, i'm still up over 20% in thistrade i got in at the early onset with the story as it developed.

but to morgan's point, the most prevalent thing investors should worry about is cash burn morgan can correct me if i'm wrong here, but i have them running out of cash ifall things remain equal, which is a big if, probably in 2023, late summer that's what investors are really preoccupied with but i think the company as a whole, i can say this because i've been a shareholder, i've been disappointed with the communication from the company i think they need to pivot now you can't just talk before these flights going up or whatever deposit they take because that cash doesn't go where -- they can't spend that cash until they actually start commercial travel so they should start talking about hypersonic travel, new york city to uk in 90 minutes. just start to give a little more depth to the story i'm still an investor but i'm tired of the lack of communication from management. >> quick last word, morgan does that sound about right in terms of their cash flow

projections? >> that sounds about right we will see what their report after the bell today what i will say is the hypersonic travel has been the long-term bull case for the stock for white a while, but a lot of that capability was seen and spoken about under the previous ceo, george whitesides who has since departed the company. to grasso's point it is something we have not heard about in a while but has been the reason to be in the long-term in the stock the stock chart, down 65% since the most recent highs in the summer looks like a bunch of launches and landings, too. >> this is the landing they don't want to stick. morgan, thanks so much we appreciate it, morgan brennan and steve. i feel so much more informed ahead of tonight steve grasso with our trades the glaze is coming off a sweet stock, getting a downgrade on labor concerns and losing more than a third of its value since its ipo. at nt. to the office. hey, i can help you do that right now. high thryv! thryv? yep. i'm the all-in-one management software built for small business. high thryv!

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plus for a limited time, ask how to get a $500 prepaid card when you upgrade. call today. welcome back to "the exchange," everybody check out shares of krispy kreme, down 3.6% after truist downgraded them from hold to buy and cut their price target to 13 it is at 13.59 right now the main driver for their cut was labor shortages, they are

saying the company may struggle to find deliver drivers. analysts say that will dampen top line growth in the next quarters and keep valuation in check. krispy kreme went public in july at $17 a share it is down to $13. now that u.s. borders are open to foreign tourists does it spell trouble for time-shares is this we will discuss with the ceo of marriott time-shares. get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity.

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our promise to deliver the food you love on time, and give you the lowest price, or you'll get $5 off your next order. shares of marriott vacations, the hotel chain's time-share business, lower, despite stronger than expected earnings today, and october sales above 2019 levels. still, the shares are down 2.5%. here to discuss weather today's reopening of u.s. borders to tourists spells trouble for the industry the ceo of marriott vacations along with our very own seema

mody. >> ceo stephen weiss of marriott vacations joining us now i am here at jfk there is a lot of excitement for foreign travelers who are coming to the city for the first time in nearly two years. i am wondering -- your business benefitted over the course of the pandemic when more people stayed at home but as boarders reopen and more international travelers are coming in, how is that changing your business? >> clear, we are very excited about the international travelers coming back to the united states. and about 15% of our owners are international owners and we are excited about seeing them back. we think it's going to be better for our business even though we have had a very, very good 2021. we think it's even going to be better now that they are coming back. >> with 85% of our customers and owners being american, i am just curious what you are trying to do to attract these international travelers that will be making their way here over the holiday season. >> well, what we know about our

owners is that they -- they love the product. they bought it because they want to use it time and time again. we saw it even early on in the summer of 2020 when our owners started coming back to our resorts faster than they did any other aspects of the lodging industry we think that the more -- the more people that have the ability to travel, they are going the use this pent up demand to take vacations and go to a wide variety of experiences that we offer throughout our portfolio. >> yeah, one of the benefits of a time sherrick steven, as you know is just that consistency. you know exactly whatyou are getting when you are traveling but for the younger traveler, the millennial, who likes to change it up a little bit and stay at a different airbnb every time they travel, what are you doing to get that traveller to book a time-share? >> i'm sorry -- i missed that question could you repeat it. i'm just having a difficult time hearing you. >> yeah, of course what are you doing to get the

younger traveller to book a time-share, especially these days where a lot of millennials prefer an airbnb >> sure. yes. so far this year, about 30% of our sales are to first-time buyers of that, 62% are for millennials and gen x he is, clearly we are seeing our product resonates very well with the younger demographics i think the traditional knock on the time-share business is for the older individuals. clearly that's not the case. the attraction is they are larger, they have a living room, dining room, just as you would find in some home-like facilities plus fully amenityized resorts and all the benefits you find in the hospitality industry. >> i am curious where you are seeing the strongest parts of the country regionally

you said booksings are above 2019 levels. where do you still expect some catch up >> what we saw was back in the september, early october time frame there was a little bit of impact from the covid variant. that was predominantly in florida and california, with a little bit ofback-off in hawaii having said that, hawaii ran 95% occupancy in the quarter even places like florida read in the high 80s generally speaking, strength across the portfolio, i would say that some of the urban locations, places like new york, are a little slower to come back i think that's all understandable, given some of the exposure that we have seen with the press and everything else about some of the restrictions in some of these locations. but we are very pleased with how our portfolio has performed. and with that comes sales of $380 million in the last quarter. >> yeah. and as we mentioned, the stock

seeing that performance as well. up 21% this year steven, thank you for joining us today with seemo mody. thanks to you seema as well. that does it for "the exchange," everybody. thanks for tuning in tonight "power lunch" picks things up right now. kelly, thank you hello, welcome, everybody, to "power lunch." i'm tyler mathisen a busy monday ahead for us the markets today keeping those winning streaks going, continuing to hit new highs. nasdaq on pace for its 11th higher close in a row. the s&p 500 up eight straight days so far at least is this melt-upset to continue we will explore that. plus, caterpillar giving the dow a boost on the passage of that infrastructure bill on friday night citi group says this is not, not, not a sell the news kind of event. which stocks in infrastructure can you still buy on the construction side and maybe on the electronic vehicle side as well because there are sweeteners i