for stocks for certain there you go last i saw it was down about 420-ish. so keep your eyes on the markets. i know "the exchange" will have a great, long weekend. i will send it over to the folks at "the exchange." it begins now. ♪ thank you, scott hi, everybody. ahead on"the exchange," earnin season is starting off on the wrong food financials, one of the best performers since turn of the year, dragging on the dow. we will look at what went wrong. meanwhile, the worst sector this year, technology. the nasdaq jumped at the open but fell off those levels. we will get some tips on how to ride this out. in rapid fire we are sharping for bargains. stocks that are down big this week, and plenty to choose from. are they buys at these levels or down for good reason first to dom chu with the numbers. >> the numbers this friday afternoon are not looking great because we see the lows of the sessions thereabouts right now

the dow is currently down 445 points, 35,668 the last trade there. 4620 is the level on the-t, off at this point three-quarters of 1%, down 38 points the nasdaq composite, particular attention paid here right now. 17,725 is the level. it is down about half a percent. the outperformer the reason it is important for some traders is 14,725 does represent that 200-day moving average or longer-term trend line for the overall market. it might be one of the reasons why you are seeing a little bit of support at these levels we will see if it holds. remember, it is a key line a lot of traders are watching. as now for the broader technology trade, you are seeing some of that move higher in certain stocks, although now that we've hit session lows it is reversing a bit what do service now, tesla, nvidia, microsoft and salesforce all have in common all were among some of the biggest losers in yesterday's session, and at one point today they were all in the green,

trying to find a bit of a bounce but now you can see, service now is down one-third of 1%. tesla turned negative, down one-quarter of 1%. nvidia, just about flat. microsoft still up about 1%, and salesforce up one-third of 1%. the news of the day, big bank earning season, we are checking out what is happening with better-than-expected results from jpmorgan, wells fargo and citigroup, but the mixed results tell you a little bit about the sentiment about banks right now. wells fargo the only one up about 3% goldman sacks reports on tuesday and bank of america on wednesday. back to you. >> we will have more on that in a moment thanks the nasdaq is trying to avoid hitting a three-month low as the tough start for tech continues. my next guest has three names to buy on the dip let's welcome in david katz. i think of you as a value investor it tells me something if you are

sniffing around. what names do you like >> some of the large-cap tech has been hit along with the overall group. we like facebook, google, microsoft. we think all are good businesses, richly priced and now selling at reasonable prices facebook and the google are about 20 to 22 times earnings, so relative to the group very attractive we think they've been thrown out with the bath water. we think when tech rebounds they will be one of the first to rebound and you are getting it at a great price >> you are sticking with mega cap tech i don't see netflix on the list though >> you don't rather than netflix we like comcast or viacom, selling at better valuations. we think there's a lot of air in those stocks, a lot of air that can come out the reason we picked the three is they've had the stock sell-off but prospects are good and the valuations are better than the overall group >> comcast, our parent company, of course. shares of viacom/cbs under

pressure today anywhere else in tech we've seen stocks with declines of 40%, depending where you are looking, some are smaller name, still high multiples does anything else interest you? >> not so much we think you want a barbell approach this year so you can buy some of the big-tech stocks at a dip and put most of your mobbie ney in the e area of the market we think that will be the best way to navigate 2022 we expect a lot of volatility. you had four pull backs of 2% to 5% since august. we think we will see more of the same as the year progresses. the best way to make money this year is to buy really good businesses, under 18 times earnings there are lots of opportunities like that. we think you will have an average return for the market this year of 8%, 9%, 10%, and we think those stocks are most likely to succeed. >> any examples of stocks under 18 times >> sure. ebay, medtronic, unilever are

all good companies, good prospects. we wouldn't buy the bernanks in front of the earnings but after. jpmorgan has a cautious outlook and the stock has sold off a lot. we think once the dust settles it will do better as the year progresses we think there are opportunities in banks if you look at the last six quarters banks reported good earnings and sold off the weeks of the earnings report and this does better. we would not be buying banks in front of earnings but we do like them and would buy the dip >> that's what i was going to ask you. you answered the question before i could. let me read what jpmorgan said this morning they expect headwinds from higher expenses, moderating wall street revenue they are likely to miss the 17% target for return on capital this is now extending beyond one quarter situation, into the fullness of 2022

aren't those comments more alarming to you? >> well, in light of all of those comments they're still going to be earning a boat load of money they still will be earning a healthy roe and the poe of the stock is still a 12% earnings. it is a big headwind, but jamie dimon has tended to be conservative with guidance we think they will be doing better than the numbers they put out today, so we think the stock sell-off is setting a new level and it will start to trade higher there are also a lot of very good things in that earnings report, credit quality is great. lending is start to pick up for the first time in the last 18 months so we think all in all the banking group is going to be very good with some headwinds but a lot of tailwinds the valuation is much more attractive than the overall market >> ask you for a quick comment on wells fargo, whose shares are -- i mean they're up today,

they're up big this year they're up probably 70% or something since last january is that catch-up would you own the shares here? >> it is catch-up. we own the shares and like it. unlike jpmorgan who talked about headwinds, most of the wells fargo report today was talking about how they fixed themselves and they're starting to play offense. we think they're running the bank a lot better. they've dealt with a lot of the issues they had a year or two ago. they're still in the penalty box with the regulators but we expect it to get better over the next 6 to 12 months. the ceo is telling a better story so we would be buying into that strength today because we think the stock will be higher >> very interesting, covering so many of the different movers we appreciate your time, david >> great to be here. >> david katz with matrix. let's look at market technicals the nasdaq has been volatile and underperforming lately but there's one indicator out there that suggests investors are not yet fearful or panicking joining me is chris murphy chris, welcome

could this be a bearish sign sometimes we want the panic as a bottom signal, right >> yes, absolutely one thing that kind of surprised us with the most recent pull back so far this year is nasdaq volatility has actually been more muted than the last couple of pull backs. if you go back six months, early december, the vxn spike was a lot higher so these more muted news are somewhat surprising. we have been waiting for a nasdaq term structure inversion to really kind of clear the decks a little bit so that's when the near-term volatility, 30-day spikes above the 90-day volatility. it has gotten close intraday, it happened a little bit but we've not closed with an inverted term truck tour yet this year that happened five times in 2021 it has been a surprise to us it feels like there's less of a fear of a crash and more of an expectation of a grind lower in tech as it gets, you know, repriced, rotated out of, and in response to the fed.

it is kind of like the fed is the big risk it is already known and weighing on the markets, but for me to see a trading bottom i like to see vxm would spike at a term inversion. >> interesting we're not in the environment where we are experience inbig declines or about to come off of them it may be more of a muddle-through lower, but that being the case nevertheless. what else do you see, chris, if you could give us some context on the markets overall do the technicals or what you are looking at hold up pretty well for the dow for the s&p or no >> well, so, you know, there's been a lot of talk about technicals this week you know, you had the nasdaq, which has been supported by the 100 day. you know, closing below that yesterday. the s&p with the 50-day. we have been looking a lot at a potential out of u.s.-based products and into international. particularly looking at emerging markets, and that has been battling with its moving average, 50-day i believe.

it finally closed above yesterday. it is back below today that's run into a lot of resistance so seen a lot of technical issues we're also seeing a lot of major reversals of big intraday moves without as much close to close type of moves. that has been interesting as well, showing you how much shuffling is going on as opposed to everything moving together. >> is that normal for january because people are trying to figure out where they want to be how would you compare the market environment today to perhaps 2021 or pre-pandemic >> well, sure. we've been seeing a lot of rotation we have been seeing rotation from time to time, you know, all through the last kip will of years. one interesting situation was on monday you know, we talked about it a little bit already, the massive reversal in the nasdaq, down 2.7% to close up on the day. that's actually historically been a positive indicator. we look back ten years, it has happened 12 times. the nasdaq has been up on average about 5% one month later

and, you know, up over 70% of the time so pretty strong performance there. what is interesting about these reversals is, you know, i said we looked back ten years and found 12 times they've all happened within the last four years. so that kind of speaks to the buy-at-a-dip mantra that has emerged over the last couple of years. monday soed that buy-the-dip mentality is there for some investors still. >> fascinating are you seeing a change in retail participation or what is happening with the meme stocks >> yes if you go back over the last year, everyone was talking about the gamestops of the world obviously momentum has slowed there. call volume has slowed there recently the focus has been on the mega cap stocks like, you know, the apples and teslas of the world. i would point out those stocks are like the titanic i mean call volume is going to have an impact no matter what, but it is going to have much more of an impact on a smaller market stock like game stok than

it gamestop the volume is there but it is not having the impact we were talking about -- >> you mean the titanic as a -- not a compliment, but we're talking about -- >> yeah, the size of the titanic. >> the ties of it, right, exactly. chris, thanks for your time today. we appreciate it >> thank you >> chris murphy with ess susquehanna. shares of watch ed has surged 10% this years we will talk earnings and rising m & a with the ceo etsy having a tough day and a worse week it is not alone. a special bargain or bail edition of rapid fire ahead. always we go to break, here is the dow heat map as stocks are near session lows. microsoft and chevron are leading the way where jpm and am ex are the biggest declines.

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welcome back the banks are in focus today with citi, jpmorgan, wells fargo, all reporting earnings beat although stocks are lower. strong loan growth jumped more

than 5% for the quarter. the stock is in the green by half a percent today, so it is continuing the hot streak to start the year joining me is brent beardall, president and ceo of waffle bank welcome back >> good to be back with you. >> it seems in the case of jpmorgan it seems concern about issues are a big problem for investors. do you think it would be unique for the big banks or would it affect everyone? >> i think it affects everybody. it goes to the headline number we got a couple of days ago, the 7% year-over-year inflation. that's a reality we are all dealing with it as banks, our clients are dealing with it. i think the key ask how we are going to answer it are you going to try to answer it by cutting back on your teams? are you going to try to answer it with outgrowing revenue >> yes talk about what you guys are doing at wafd. it is said you have done a good job transforming

how are you getting 5% loan growth >> the key for us is we've been in the market consistently so many people when the pandemic hit pulled back lending. we didn't pull back. we leaned into it. as a result, we had record loan production for the last two years, and as you called out just this last quarter we had $700 million of net loan growth. the key is our clients they know we'll be there for them in the good times and the bad times, and it is the momentum that is building for us when you look at the overall industry it is flat loan, so to be able to have that kind of loan growth i think is a positive >> can you talk about what kind of customers those were and if you had any concerns about their ability to make it through the pandemic >> yeah. no, they -- i think we all had concerns because, you know, two years ago we were wondering what we were all looking into, but the reality is we've experienced huge appreciation in real estate about 80% of our balance sheet is in real estate loans, so

those clients have done phenomenally well as real estate values have gone up. you are seeing those clients want to build more real estate or expand portfolios >> what parts of the economy do you expect to be strongest this year and where are you still seeing underperformance? >> yeah, you know, we're in the eight western states, everything except for california basical lirks abasically and we are seeing strengths. the biggest obstacle is how to get enough employees to drive more demand. the demand is out there. it is finding the employees to be able to do that i think the answer most people are trying to deploy is technology bringing technology to bear so the lowest paying jobs, you can serve those clients through technology and really focus on the highest paying, the value-added jobs >> right it sounds like in those cases that, you know, salaries and wages are still going up do you want to offer a comment as well on -- i mean should we expect you guys to be acquisitive this year? there's a lot of focus what the

fed's posture might be towards deal making in the bank space. where do you go from here? >> we have done a number of acquisitions through the years that's not our highest and best use of capital from our perspective. if we can post double-digit organic growth, i think that's the highest and best use for our capital. acquisitions can be a wonderful thing, but acquisitions can also cause you to lose your culture there's so many great franchises that have gone down because they've done the wrong acquisitions so never say never, but our preference would be just to continue to grow with the clients we have today and bring on new clients >> finally, because i'm asking everybody these days out of curiosity, what is the deal with work from home if i'm at your bank what are your expectations across the board >> yeah, you know, we want to be as flexible as possible. the most important thing is the health and safety of our colleagues, of our clients, but ultimately what i want to do is build a culture where people want to come into work and want to work together we all have proven during this pandemic that we can get our jobs done remotely, but we want

to be together because we enjoy one another's company and we get more done when we're working cohesively as a team >> all right so looking for that in-office culture. brent, thanks so much. we appreciate you joining us today. >> great to be with you. thank you. >> brent beardall, president and ceo of wafd bank coming up, kevin mayer on his recent media buying spree, investing in content and streaming wars we'll have that. plus a look at a growing trend converting offices into apartment buildings. it is all over manhattan we will tell what it means for both sectors a quick check on crypto. bitcoin and ethereum slightly high right now, both up about 2% for the week we'll be back in a moment.

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♪ welcome back to "the exchange." we are just off session lows the dow is down 448 points the s&p is down almost 1%, the nasdaq about three-quarters of 1% let's start with boston beer, the stock falling. they're hit by supply chain issues and waning growth for the seltzer brand. it is down 11.5% also seeing big declines over at walt disney. shares are down almost 4% today after getting a downgrade at guggenheim to neutral based on lower predictions for direct-to-consumer and parks businesses more detail on that call, head to cnbc.com/pro. of course, it is not helping the dow today. a rough day for peloton, the stock the worst performer on the nasdaq 100 but it will no longer be in the nasdaq 100

of at the end of the month it was kicked out by the index today, replaced by old dominion. it is just over $30 a share right now. we will have more on their future in "power lunch." now to rahel solomon for a cnbc news update. rahel. >> hi, kelly here is what is happening at this hour. ohio supreme court rejected a map for the state calling it gerrymandered. it is sending it back to the ohio redistricting commission to submit a new plan complying with the state's kpungs new york congressman john katko says he will not run for reelection he was one of 10 representatives who voted to impeach former president trump. he faces at least one primary challenger for his seat. federal prosecutors are recommending that the justice department drop charges against m.i.t. professor chin over his ties to china. the potential dismissal of the case marks the latest setback to a crackdown on chinese influence within u.s. research and in italy silvio

berlusconi, a step closer to becoming the president he will be supported in upcoming elections, but commentators say he is unfit for office due to his tax fraud conviction and the sex parties he held while he was prime minister on the news, code tests and scans on the rise. look at efforts to stop them tonight at 7:00 eastern. >> all right rahel, thank you very much we appreciate it, rahel solomon. still ahead, se, charge point, draftkings, all down 10% or more this week. are they a bargain or should you bail a special edition of rapid fire next 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.

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♪ welcome back, everybody. let's catch you up on a few movers that should be on your radar this afternoon it is time for a bargain or bail edition of rapid fire. four stocks having a tough week and a tough start to the year. do you buy here or do you completely bail on these names here to help give their takes,

gina sanchez, tim seymour, and dom chu, who just finished lunch and made it here in time welcome one and all. first up is netflix. the worst performing faang stock this week and down 14% so far in 2022 selling accelerated this year as the tech trade got hit it still trades at 45 times forward earnings, and ahead of its results on thursday analysts are looking for the all-important content slate and how they're going to drive new subs gina, love it or list it >> so we still love it it is still on lido advisers buy list and we own it in the strategies look, right now the stock market is taking a battering ram to anything with high p/es, but this is a company that has managed to grow their margins. they're actually heading into positive cash flow territory, and they've established their moat in terms of content and expecting to grow and add new

subscribers to the tune of 8.5 million. we think for us it is going to weather the storm. >> all right goldman just lowered their price target to i think 580. shares are trading in the neighborhood of 514 today. tim, are you a fan >> well, again, if this is bargain or bail, it is a relative bargain so i'm playing my own game on this one look, netflix relative to itself and relative even to disney streaming business, it is actually cheaper than disney streaming business it is not cheaper overall, but for a company that will have 300 million subs by 2025 and is going to start, as gina said, have this free cash flow component to it. i think this company is a bargain relative to itself and relative to the streaming businesses out there again, i have it at 23 times ebitda by 2023, which makes it not expensive. $500 is an amazing support level for this stock so i like it. >> okay. it is off about 26% from the highs, dom are you surprised it has been

one of the hardest hit names as the trade has toppled? >> no, i mean this is one of the names if you want to categorize on a more binary basis, if it is a stay-at-home pandemic play or reopening play, it is the anti-reopening trade the whole idea is that people were locked down over the last year and a half, almost two years, streaming netflix all the time as people started to get back to normal, feel like they could get out more often, do more normal things, some of the companies may not benefit as much. maybe it is caught in some of the rotation out my issue is whether or not streaming still has the momentum it had over the course of the last couple of years it might be because there's a revaluation, kelly, of this particular stock or this particular industry as things get back to normal from the pandemic overall from a streaming standpoint, i think it and disney plus are still probably top of the heap >> i take your point i like this chart we are showing because lately who has momentum? hbo max. there's tons of new players on the scene. paramount plus is pushing its

content this year. that seems to be a change. all right. we have tim and gina both on board here so it should give netflix a better day next up is etsy. it is the worst performer in the s&p this year as internet names keep taking a beating. shares are down 25% in two weeks, and they're nearly 50% off the november 52-week high. not everyone is bearish. needham names it the top stock pick last week saying, quote, all the reasons to be bullish are still there. tim, what do you say >> kelly, i say bail and bail again. there's not enough growth in this growth stock. i recognize the two-year stack was 129% i understand this was the right place to be internet stocks overall but you are not getting the same growth in the next couple of years. take rates are going down. they have to spend to grow, and i realize that's what growth companies do but through acquisitions and investing in marketing, i just think the best time to have owned this stock was really pre-pandemic i see -- first of all, i mean

artisanal last time i checked was -- i wanted artisanal cheese i don't need a sock puppet i think there's a limit to the size of this addressable market, i really do. i don't like the valuation right now. >> gina, what do you say >> well, i think -- i think their acquisition of the clothing reseller is actually a trend that is growing and actually getting bigger, which is this notion of recycling to the nth degree i do think there's an interesting story here we don't own it. i like the story but i hate the valuation. that's the problem with this particular stock, is that it is so highly priced and its growth obviously was mass itch. they're a cash cow so it is an interesting stock, but probably not at this price >> dom, this was a play as a way to kind of get around supply chain problems i wonder now that we're past the holidays if that story has kind of run its course. >> so if etsy is able to retain a lot of the folks and customers that used it during some of the supply chain woes, that actually used it because they were at

home more during the pandemic and found a side gig or side hustle to make stuff -- rather make stuff on their own and sell it on etsy's platform, there might be more of a momentum play coming down the line from an operational standpoint that is to say it is not amazon. it is not even close to amazon, but if this marketplace can become something where people really find a market that they want for some of the custom goods, i know for me i have bought more off etsy in the last year than i have in my entire life or the entire -- you know, just during the pandemic i don't know if other people feel that way as well. >> i go there for gifting, absolutely >> custom socks for my daughter, i bought them for christmas on etsy >> there you go. i got a custom puzzle for my cousin's twins let's move along to charge point, an ev play that was swept up in the euphoria of the infrastructure bill and subsequently hurt in the aftermath. we have rising rates we have a lot priced in. shares are down 15% this week and 70% down from the 52-week

high it is -- tim, i will go to you on this one. do you love it, list it? what do you do >> are we loving and listing or are we bailing and bugging >> i can't help it i love that show >> all right, all right. so i kind of love it and, you know, tough for me to say bargain on this because that's oxymoronic, but ten times sales it is not crazy relative to its space and itself. it was 20-times sales stock months ago and they're the clear leader in north america. they're 70% market share i see so many tail winds for their business i do think actually the fleet charging business, even the work charging dynamics are coming back online. i think the spac spiral and the reddit dynamics hurt this stock more than anything i think it is a place to start nibbling >> dom >> i feel as though tim has an excellent point here, because you look at the fundamentals and a lot is driven based upon their

anticipated growth, how many stations they have, how many they can do, the total addressable market, that tam all of these things maybe do bode well not from a valuation standpoint but from straight fundamentals, what can they do as a company this though, this company stock trades so much more around sentiment and momentum than it does anything else, particularly with regard to headlines involving infrastructure or not. so if you are going to play this particular stock, it might be one of those things where you say, hey, if it takes enough of a beating, it is going to be something that eventually plays to the upside again. again, it may turn around complete reply six months later so you have to play the sentiment, maybe not the fundamental so much here >> that's a tough one-year point making your point of charge point around 14. gina >> i think that, quite frankly, i'm going to focus on the fundamentals because i do actually think it does have a strong story in the long term. the problem is that this is a very cash-intensive, capital-intensive business so they're a long way off from profitability. the market right now is just, like i said, taking a battering ram to anything that is highly valued and, worse, not

profitable here this one has two dings against it when this company -- and we know there's going to be a large infrastructure bill for ev, this is a big priority for the united states, however, we don't know how the market is going to evolve they're a leader now, but this is actually getting to be a more and more crowded space so the competition isn't exactly zero in fact, i would say the competition is getting harder and harder day by day. >> yeah, which reminds me what we railroad talking about on streaming. that brings us to our last one which is draftkings. the sports betting company that went from spac superstar to laggard, not getting a boost from new york state legalizing sports betting this year shares down more than 13% since new yorkers started gambling and down 70% from their 52-week high gina, we will save you for last. tim, are you a buyer here? >> look, not a bargain but not a bail again, i feel like i'm playing my own game here so i tell you what, i think, you know, at five times sales going

forward, this is not terribly expensive. they are a market leader in many of the states that are recently online i know new york should have been more of a catalyst, especially with the dynamics of this market particularly, but it is a land grab they are a leader. there's been an irrational marketing and advertising environment. it is certainly hurting the ebitda losses. i don't know if it gets better in the short run, but it has to get better in the medium term. i just like this space i think it is a brand leader >> i'm going to call that -- well, i was going to call it a hold but now you are sounding more bullish dom, what would you say? >> i would say the addressable market is big for online gambling i would say what it comes down to is whether or not the price has fallen enough. i would say that if you look at sports gambling, this is one of those things that does have growth, it does have trajectory and a lot of, you know, live sporting events are tagging partnerships with these things

maybe it has fallen far enough >> gina, bargain or bail >> so i'm actually bailing on this i might regret this given the comments i have just heard, but the issue that i see is that they're also managing a delicate transition that's going to depend on execution, and that's the transition into the nft market and into the virtual space. so that could actually be very positive, but, again, this has so many headwinds against it right now that, yes, the price has fallen but i think it could continue to fall until we get over this latest wave. so maybe it is a short-term bail, but you might want to look at it. so how do you rate that one? >> yeah. i can't get it straight anyway, bargain or bail or love it or list it. i do love it >> trade it or fade it trade it or fade it, tim knows that one >> exactly a lot of ways to go. thank you so much for this edition of rapid fire. coming up, city dwellers who work from home may soon find

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♪ proswelcome back talk about a work/life balance developers are converting offices into apartments at a record rate. diana olick has the story. >> reporter: it was a big, boxy, '70's style office building at the edge of a dead end d.c. neighborhood now converted to an apartment building it is part of the area's rebirth >> we took a building that was a perfect rectangle, carved it into an e, put a new skin. >> reporter: the developer saw an opportunity that in something that at face value seemed to have no value. >> we were able to utilize the stairwells and the elevators and much of the other infrastructure here and along with that, in today's zoning we wouldn't be able to build this as close to the water as it is and would not be able

to build it as high as we did. >> reporter: conversions from office to apartment are suddenly soaring. of the 32,000 apartment conversions in the past two years, just over 40% were from office buildings that's a record. and thousands more are on the way. philadelphia and washington, d.c. have converted the most units in 2020 and '21 combined los angeles and cleveland have the most projects lined up for this year. it began well before covid, although the drop in office occupancy now is expected to accelerate the trend conversions are also growing in popularity, in part because they're greener than demolishing and rebuilding >> you have all of that landfill, right, of the structure going down, and then you have all of the carbon emissions that it takes to produce all of that new material and get it to the site and get it installed and so on >> while the office market is hurting right now due to the pandemic, developers like jamel say it is a moment in time and

they're still very bullish on the sector they're just more bullish on apartment demand, which we are already seeing rise as workers return to big cities like new york rents there are skyrocketing again because there's just not enough supply, kelly >> my running joke is manhattan is going to become a bedroom community. that all of those office spaces, there's plenty of people that would be happy to live there what does it actually mean, diana, for those involved here >> it is a great opportunity avalon bay, one of the biggest apartment owners in the east, bought two and they're going to convert them into luxury apartments and senior living they're going to benefit from it >> fascinating my sister-in-law moved into a building, i wonder if it is the one you showed and it is on the water in d.c she loves it >> it is fabulous. >> it is a huge trend. thank you very much, our diana olick reporting. still ahead, from disney to tiktok, now to sports streaming and private equity, my next

guest has seen it all. kevin mayer joins me after the break with what is next for hollywood and the multi-billion dollar investment he is making to compete in the content arms race stay with us ♪♪ care. it has the power to change the way we see things. ♪♪ it inspires us to go further. ♪♪ it has our back. and goes out of its way to help.

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♪ welcome back 2021 was a huge year for media deals, massive deals like at&t's warner media combining with discovery and a wave of smaller deals as the arms race for content heats up our next guest has been no stranger to media deals. kevin mayer's candid media has been on a buying deals just two weeks ago a minority stake in will and jada smith's company called westbrook joining me, cnbc'sulia bornstein. >> thanks so much, kelly thank you for joining us today, kevin. there's so much ground to cover when we talk about changes in the media landscape. give us your perspective on what you are trying to build with candle you have made a number of

investments and investments in this will and jada smith company but all full-out purchases of the likes of hello sunshine. what is this combined company going to be about? >> thanks for having me. it is always a pleasure to be on with you look, we see a bright future for media and we see there's a multiple platform approach you want to take we have traditional film and television content hello sunshine is a great example of that. westbrook. we think that social storytelling has a bright future and social media has become more important than ever and many more eyeballs are trained to social media than even traditional media at this point in time. i can harken back to my tiktok moment and tell you that that's a very important medium now. so like social media storytelling moon bug, another company we bought, is based purely on ip that comes from youtube. that is storytelling in that social media sphere is very important. if you have a great product and you have a great creative win, a

victory, and you have influencers that are part of that creative enterprise and you couple that with social media storytelling, those audiences are ripe to have e-commerce associated with them we think there's an e-commerce play, a social commerce play, if yo to feed the streaming growth that we see out there. we see it as you a multiplatform approach we have a revenue diversification strategy we feel great about. >> do you imagine having these companies that you either own or have invested in continue to be arms dealers in the streaming war selling their content to the streaming and media players? or can you imagine them rolling together and offering a new type of streaming >> we don't call it arms dealing, we call it arts dealing. artistic streaming we think that selling and licensing to many players is

part of the plan if you look at hollywood touchdownr today, big studios are vertically integrated, disdisney, warner media, universal, they all have to feed their own streaming services on a global base. if you are a streaming service like netflix or apple tv plus or even hbo max and you are looking to license product that you don't create from your own studios and you need to have more product than you can possibly create on your own you need to go to an independent source because the big guys are not licensing to competing streaming platforms anymore. i think being an independent content company is more important than ever. but i think bringing scale and quality to that equation is also what we are trying to do hello sunshine is products made by women for women it speaks to an audience in a way that's unique. moon bug for kids, we are going the look to fill out that portfolio of men and women young and old so we can come to market

on an independent basis with a full suite of product. i think that's a great business model. >> kevin, it is kelly here again, appreciate you joining us now i know whose pockets i am lining every time we watch little baby bumps. i have learned that today. it is better than coco melon, my two cents. my question is about tiktok and china. the product has been insanely successful trump administration was more concerned about it kind of being a trojan horse into u.s. politics were we wront to kind of drop the case in going after them and allow it to remain as successful as it is with basically no changes? >> look, i don't know the status at this point. i am not sure if it is totally dropped or not i don't know what the biden administration is planning, if anything it is, as you said a great product. it serves an audience and fulfilled a substantial need i am an avid user of tiktok. i think it is a unique product you take that artificial

intelligence and machine learning that tiktok has, couple it with videos of all type, there are millions of videos being uploaded every day that's a very, very substantial and protectable product. it is really great look, do i think that there should be more done? i am out of that realm i think the geopolitics is a difficult dynamic to even talk about or contemplate i love the product and think it serves audiences great i am a big fan. >> yeah. well, while you are no longer involved with tiktok, you do have another role, which is chairman of dezone, a streaming sports service i have been reporting a lot about the growing interest in sports rights from the likes of apple and amazon i am wondering how you see the future of sports playing out, especially as you have these deep pocketed tech giants raising the prices by making these bids what's going to happen with the future of sports and how it plays into the v bundle?

>> it is very interesting. i think that the european markets where dezone is focused are different than the u.s. markets. if you are a u.s. observer of sports you would say wow, sports rights go up, continually go up, there is no ends to the increases in sports rights by and large, that's been correct. of course gravity takes hold at some point, nothing goes up forever. but operating in european markets you would have seen the major sports rights go sideways to down actually the last couple of rights cycles the english premier league went down two cycles ago and was flat the last cycle liga in france went down they bought inexpensive rights serie a in italy, bunds leggy sideways the german sogger leagues. in those territories the rights

have been moderately decreasing. we think those are great plays there, audiences are avid in europe for what they call future boll i am in london right now i think that's a great business. i think sports are delivered to the platform where they are most enjoyed. i think that an interactive platform to have sports where you can look at realtime statistics, you can do what i will call telemetry, see what is happening all over the field in europe, even in the u.s. as more and more states prove it you can have gambling and betting alongside the video they are watching that's a powerful combination. >> interesting to see how it is making sports much more interactive. we will learn more about the streaming wars in all of that space when netflix reports next weekend. kevin thank you for joining us today. >> thanks to you both. that was interesting, especially about the european sports rights. still ahead, demand for ev batteries have been skyrocketing as automakers ramp up

production how high the surge could go and why it doesn't necessarily spell gains for the mining stocks. that's next. you have to deal with higher expectations and you have to lower wait times. with ibm, you can do both. your business can unify apps and data across your clouds. so you can address supply chain issues in real time, before they impact your bottom line. predicting and managing operational issues that's why so many businesses work with ibm.

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demand for lithium is surging as more automakers shift to evs, and that demand should continue to grow through the end of the decade according to estimates. pippa stevens is here with more on the price action and the stocks affected. >> that's right. a record year for lithium amid this electric vehicle boom experts say prices are going to keep on climbing with automakers promising vast ev fleets demand is outstripping supply prices jumped more than 200% last year to record levels according to data from benchmark mineral intelligence in some cases the move was more extreme. in china, battery grade lithium on the spot rose 485% catching buyers offguard.

lithium is ever where, but mining and processing it is challenging and expensive. after a period of low prices between 2019 and 2020 producers scaled back. today new production is being announced but not fast enough. according to deutsche bank demand will double by 20 30u '03 but demand could quinn up theel. three mining companies hit record highs in november, are down since other raw materials essential for batteries including nickel and graphite are on the rise mining projects are capital intens intensive. >> that does it for "the exchange," everybody "power lunch" starts right now ♪ welcome, everybody, to "power lunch," i'm tyler mathisen, glad you could join us on this starting to ge