balancing growth and value health care does that for you. cvs is a name i would own there as well as united health >> all right that does it for us on the halftime report. i'll see you tonight on "fast money" at 5:00 don't go anywhere. "the exchange" begins right now. thank you, melissa hi, everybody. i'm kelly evans. after two years of buying stuff and skipping experiences, is that trend about to reverse? we've got the new numbers and the market impact from stocks to inflation. and all those new experiences mean a lot more flying and driving and that has demand for oil posed to go even higher. natural gas prices are surging again today. we'll get stock picks in the energy space and earnings are proving to be a huge swing factor for stocks. we'll look to the next big reports with qualcomm, meta, and spotify. >> you talk about that big earnings story the biggest and worst performer

in the s&p all due to earnings right now. so to kelley's point, let's talk about that tale of two markets earnings driving the action. mostly in technology we've seen either side of unchanged today. but generally more positive. actually, floating toward session highs for certain parts of the market. the dow industrial up 150 points to the up side the s&p 500 up about 35 points and then 14425 or there abouts for the naz nasdaq that's up about one-half of one percent. a bounce back trying to hold we talk about the growth versus value trade. for the better part of the last year, the value trade has been that kind of slow and steady up side performer that's the orange line that you see there. meanwhile the white line a lot more volatility as you can see over the course of the year, and specifically just in the last couple of months, but look at what's happened in the last week as we've come off the lows, much more performance has been focussed on the growth oriented

stocks versus value. that's a dynamic whether it's sustainable or not will be a big question for traders to try to answer in the coming weeks and the stock of the day, we mentioned the one-half, the biggest gainer in the s&p 500. alphabet not often we see a megacap communication services or technology company become the best-performing stock. it's up about 9% right now just off of its session highs better than expected results both profits and revenues. but more than anything else, the chatter is about whether or not there could be any kind of ripple effect from the 20 for one stock split that these folks at alphabet are looking to do. remember, a $3,000 price tag means roughly $150 a share if that thing goes through, and people start to say hey, you know, maybe we do find more affordable shares a little bit more attractive. driving a lot of the sentiment there informal we'll see what happens. class a and c shares catching a big bid today. over to you. >> ibm goes out. maybe google comes in. >> now you're speculating. i like that.

>> we'll see what it holds dom, thank you very much meantime, one big trend that emerged during the pandemic was consumer spending money on goods rather than services just look back to last year and spending on things dramatically outpaced spending on doing things goods spending is up 22% since the pandemic began while services spending is only up 5% according to jeffries. that trend may be beginning to change mastercard spending polls tracks spending across the platforms. lodging and dining expenditures up more than 30% and this all has big implications for inflation let's bring in mastercard's chief economist and head of the mastercard economic us institute. welcome. >> thank you >> how much runway do you think we have for this to really reverse, and do you expect it to reverse sharply? >> so it's fascinating we saw a 27-year trend of moving toward more services just get

totally interrupted. and then just toward the middle of last year, we saw the consumer really start to recalibrate its spending and think about that buying too much stuff as you mentioned, and looking more toward the services. now we've seen that rebound or that momentum of services really climb through the end of last year and then omicron happened and kind of provided a bit of a setback. but what we're seeing in the latest data is the setback looks to be fairly temporary and things look back on track toward that services or that experience economy that we were in just a few years ago. >> we have seen the reopening stocks this week gaining momentum with the restaurant names. that's kind of helping it move to the up side if we talk about what ha that holds for the next couple months, where do you expect to see people spending the most >> what's really interesting is during the last holiday season, we saw shopping early both in store and online, and we're seeing that now. we're seeing that continuation

of strong e-commerce spend as well as people shopping in store. and then showing up in restaurants as people continue to order in as well as showing up in the restaurants and getting back out there with friends and family so those are very key trends that we're seeing happening today. >> all right so let's talk about the inflation implications because it's a big deal. if you want to look at what happened on the supply chain side of things, you had a huge wave of demand overwhelm an area for goods it was not used to that, and we've seen the supply chain issues as a result does that mean we can expect easing on that >> i think there's good reasons to expect that impact to be positive or alleviate some of the pressure on inflation. certainly there were two factors driving inflation. higher the disruption at the ports and factories and everywhere else in terms of labor and getting stuff. and then excess demand as the demand started to cool off, that

will alleviate that front and workers start to go back to factories and ports and things like that which we've seen, again, providing pressure easing off. so both of those factors should help the inflation story and should help the overall consumer spending story quite well. >> all right you have some more sort of hyper local data as well tell me where you see outperformance across the country and by what kinds of consumers. >> so it's really fascinating. the mastercard economics institute we're focussed on using spending false data. we're seeing it across the country where the southern parts of the country that are less impacted by the blizzard that happened also got a big benefit from some of the excess savings that has continued we're seeing that as a relative outperformer a lot of mobility or people moving to the south as well as some of those less populated states in the middle of the country. those are the areas that we're seeing that momentum, and that really goes in line with the trends we're seeing in overall

mobility as well as some of the restrictions and the spending patterns that we see >> finally for those wondering how much spending power the consumer going to have this year when the fed is pulling back, fiscal stimulus is pulling back, it's not like you can look into people's bank accounts, but what does your data suggest >> that's right. so the way we're looking at that is are we seeing consumers continue to spend in the face of these head winds as you mentioned, that $600 payment that came into people's bank accounts at the beginning of last year in january makes it difficult for sectors to outperform relative to last year what we're seeing are strong numbers. omicron that just happened, we're seeing strong numbers in the face of that and, of course, the latest disruptions on the weather front we've continuing to see a lot of spending momentum. we're looking at monitoring that closely to see if consumers are responding to the new piece of information or how much of a lag or impact we're seeing from that hangover of that big spending

that happened at the end of last year >> in other words, you're not seeing a huge effect it looks like people are robust. >> that's right. we're seeing the continuation of firm consumer spending both in person and in store in a lot of broad-based categories people want to get back out in the retail space that's been prominent and also on the experiences economy. >> very interesting. thank you for joining us with the details today. we appreciate it >> thank you very much my next guest says in the market industrials are the best place to be right now. names like ups, caterpillar and united rentals industrials have the highest growth estimates of any sector they've been turning in strong performances this earnings season joining me is the co-chief investment strategists and emily, your interest in this sector to me jibes with what we heard about the strength of the s consu consumeer. >> demand is remaining robust.

clearly elevated inflation pressures, the value in the cyclical side of the market, but not all cyclicals are created equal. what we're looking for now is really fading those lower quality winners of late 2021, early 2022, and looking at this sort of intersection of value and quality. so what we want to do is own companies and sectors that have great earnings growth prospects. we want to look for companies with high operating leverage think about a economy that has significant investment in property plant and equipment who doesn't need to make much additional investment in that fixed asset, but can pass the prices along so we see that pricing power is really being a key element of the story here, and we're finding that really in the industrial sector. this is a sector that's got great return on equity strong balance sheets, and again dallas pricing power we're looking for as inflation remains elevated >> we had a guest the other day,

more of a technical trader who said industrialsoften outperform in a rate hike cycle. how much of the strength is already playing out? after ups's move on earnings the other day, people probably wish they were in it before that. >> yeah. industrials has started to sort of catch footing here early in 2022 it was an overweight of ours last year and we were surprised by the disappointing performance last year. but i think what's really interesting given this rate hike environment is industrials is a sector that actually doesn't need a steeper yield kufb. our view going into 2022 is you'll see the yield curve which is flattened by a considerable degree already, remain flat as the short end of the curve moves higher, the long end stays range-bound as economic growth moderates throughout the year. a lot of cyclical parts of the market are actually very much depending on higher rates and higher inflation to show leadership, and industrials is one of the sectors that can grow

organically and doesn't necessarily need that. the other element here is just earnings growth. you know, last year we think about it being almost earnings nirvana. we saw 45% earnings growth for the s&p 500. now we're looking at mid single digits, high single digits earnings growth. the industrial sector is pencilled in to see about 35% earnings growth in 2022. so that's where we want to look for those opportunities. >> what do you do with technology >> tech is another favorite sector of ours, and it comes back to this element of quality. right now what we're doing is leaving the early part of the market cycle that's max accommodative fed policy when economic growth is ripping off the bottom earnings growth starting to turn around now as we enter this mid cycle period, that's where fundamentals come back into the spotlight. this is a period in which economic growth is going to go from awesome to normal and in that type of environment, you want companies that have great balance sheets, good

return on equity, ability to maintain margins, ability to grow organically even as the market or the economy returns to more normal levels there's no more fiscal stimulus. we want to own technology in particular in that intersection of quality we don't like unprofitable tech. that was our view coming into the year we're certainly seeing some elements of froth, getting a move from the market in those areas. it's really about quality growth you're going to find that in tech you're going to find that in communication services >> final question. you mentioned the yield curve earlier. you like industrials you can stay above it. what do you do with financials >> financials we're comfortable being neutral in the u.s we don't like financials internationally. we're okay we think credit growth can continue to expand here as the economic recovery continues to unfold the challenge there it comes back to earnings so earnings growth for financials actually just got downgraded and we're look at negative 10% earnings growth for

2022 we think there's better opportunities in areas that can grow organically and don't require the steeper yield curve. >> that's surprising that it's a decline, and of that magnitude emily, great to have you here today. thank you so much. walking us through your play book we appreciate it >> thank you coming up, the supply chain blame game is in full swingthi earnings season. we'll speak with an analyst who says supply chain issues are a boon for three stocks in particular plus 16 minutes. that's how long today's opec meeting between russia and the other nations lasted as some of the world's most powerful oil producers agreed to stick to their plan to increase an output. oil down fractionally while natural gas is surging today we're going to look at some top energy picks >> take a look at the dow heat map with united health and travelers leading the way. disney and sales force the biggest laggards we'll be back in a moment.

welcome back retailers on the whole saw a rebound last year, but it wasn't great for everyone the discounters lagged with five below. raw stores fell 7% compared to the 40% jump in the retail etf

my next guest says now is the time to buy the sector for supply chain issues. lo rain, it's great to have you. does this apply to all of retail or just a couple of names in particular >> we're focussed on today as the off price retailers. you mentioned tjx, burlington, and the reason for this, their market share gainers they did great on the top line last year, but they really got hit by supply chain cost pressures. what we see differently this year is we see them actually starting to reap the rewards of some of the supply chain issues. you were speaking with an earlier guest about the supply chain not moving think about the 100 ships outside the port of l.a. and the six, eight, ten-week delay in getting the containers unloaded. by the time they're unloaded, they're probably too late to head to retail stores. that's where off pricers get the best deals what we would expect as the year goes on for the off pricers is

they will start to see some of these elevated supply chain costs wane toward the back half, but at the same time, they'll be getting the benefit of groet deals on great branded product from this liable product sitting outside the ports. i think it creates a really nice sales opportunity, and further expansion and market share gain for the particular sub sector within retail. >> how much up side do you see for those three for tjx, ross stores, burlington >> we see pretty substantial up side to the stock between 30% and 50% depending on the name. and really, that will be making up some of the lost multiple they're trading at a discount to their ten-year relative multiples versus the s&p so we think that can bounce back after two years of underperformance and we also see the opportunity for some nice earnings beats in the back half as they start to bring some of this really well-branded sharply priced product into the stores.

>> so the -- we're showing the multiples. burlington 27 times forward earnings tjx at 22. how does that stack up historically >> historically they've tended to trade higher. for tj and ross into the mid 20s. in years where they're growing their earnings in the high single or lower digit. burlington has a higher growth rate and a longer runway for earnings and margin expansion. so they are all trading at a discount and i think the reason for that is because they faced some pretty severe cost pressures when you think about off price, they do handle the product a lot. it's not as efficient as a full price retailer so because of that, and the fact that they charge lower prices for those goods, it hurts them a little bit more on the gross margin line. that's what we think we'll start to see ease as the year progresses this year, and that's where you'll see some of the really nice earnings up side opportunity. >> very interesting. so let's expand it a little bit. maybe to the rest of your

coverage universe. what about the rest of retail as we enter 2022? is this going to be a year of differentiation? >> i think it will i think we'll go back to the typical cadence of a stock picker's market. the sector i cover is one of the least correlated within the s&p. they generally all did well last year because you saw that pent up demand and the real consumer rebound in goods spending. we think it will be a little more nuanced this year especially since we've seen many retailers hit margins well above precovid levels. the supply chain had a different impact for some of the other retailers, meaning they had much less inventory than they would have liked as a result, they sold through a lot more goods at full price so you're entering this year with sales fully recovered, and gross margins well above where they were prepandemic. we do expect for the most part, margins to come down for the full price retailers in 2022

and that's one of the key differentiators versus off price where we think by the back half those margins will be going up maybe a little bit of a tougher year >> and watch those margins and like you say, they're falling in much of retail likely, but not in this niche. interesting point. thank you for joining us today it's good to see you >> thanks for having me. >> and still ahead, housing demand is hot, but mortgage companies are not. in the past week there's been a divergence between stocks. plus blending work and play. one hotel chain revamped it. did that come out of the ceiling? revamping the rooms in the battle for post pandemic customers. we'll look at who's doing it, atwh's changing, and what the hotel of the future might look like you're an owner with access to financial advice, tools and a personalized plan that helps you build a future for those you love. vanguard. become an owner.

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welcome back we're a little off session highs. dow is hanging onto a 105-point game the s&p is the outperformer. dow and nasdaq up a quarter of a percent. let's zero in on some of the things going on underneath the surface. finfek tech is flopping paypal is down 27% dating back to the spinoff from e-bay. block. affirm, coin base all lower. range of 5% to 10% the e-commerce names are also in the red today. shopify having the second worst day ever it's down almost 10% stitch fix, etsy, way fair, all in the red and social media selling off as well pinterest coming off at seven

straight months of losses. twitter hasn't had a positive month since last summer. meta or facebook earnings tonight. we'll have more on that in a bit. pinterest down about 9% right now. the stay at home stocks are also getting slammed with peloton, spotify, netflix, and zoom all lower. spotify also reports today we see declines of about 5% to 6 %. let's get and get a news update. >> here's what's happen agent this hour. a rez dugs of dueling lawsuits a jury has found no defamation occurred between a republican u.s. senate candidate and the woman who accused him of molesting her when she was 14. the allegations up ended his campaign and he lost more than 100 million people are under winter weather alerts. heavy snow already falling in central illinois up to 15 inches is expected. more than 1800 flights have been

cancelled across the country and nearly 1900 flights have been cancelled for tomorrow on the news tonight, getting ready for the storms and which city is likely to get hit the hardest. that's tonight at 7:00 eastern the nominations are out for the next class of induck tees to the rock and roll hall of fame first-time nominees include eminem, and dolly parton the choices for the class of 2022 will be announced in may. so much love for the real slim shady >> we have similar music tastes. >> that doesn't surprise me. like minds >> we can talk about that offline. thanks still ahead, crude oil came within nearly a quarter of $90 a barrel after opec agreed to boost output chevron and bp both up about 55%. we're going to look at some of the energy plays and how much

these runs can continue next before we head to break, let's get show and tell where we show you a chart and tell the story shares of gm drifting lower despite forecasting earnings at or near record levels at the chip shortage eases. the ceo told "squawk on the street" she's bullish on gm's pivot. >> we got over 110,000 reservations from both retail and fleet customers for the si silverado-e. 25,000 reservations for the bright drop cargo van. we see strong demand for our products between 22 and '23 we plan on building 400,000 evs a significant ramp and a steeper ramp from there.

welcome back, erveg. crude oil dipping a bit today. in line with what analysts expected still below what the u.s. and other nations would like as gasoline prices and inflation continue to surge. what does it mean for investors as energy has been the strongest sector to start the year

let's welcome the lead analyst at sankey research it's been this incredible month. we look at exxon's performance how much of it is in the rear-view mirror already >> that's a good point we're getting to sort of slightly scary levels. we're just about -- actually, we think 120 is a problem so we do think that there's still quite a long way to go but we dif knitly are worrying about opec struggling to meet volume and involvement around russia makes the opec meeting relevant here today we could get into a severe spike situation. we want goal di locks, not spikes >> we've heard this time and again even from exxon itself which says it doesn't want higher oil prices. is there anything the u.s. can do about that or is -- i mean,

normally we'd say well, this is the conundrum for investors. people are happy to drill, but they don't seem to be as happy to drill as five or ten years ago. >> i think the administration can get somebody who knows something about oil, that would be great it's been -- how bad u.s. policy has been in this environment the spr, you can read in my research we thought the spr release announced was going to serve to increase oil prices. and the crude prices and high gasoline prices that we haven't seen yet are in the post there's a number of issues the other question that if i could ask you to ask would be if the society wants the prices because of the administration's mishandling of world oil, i think the saudis are prepared to have slightly higher prices than otherwise if they were more -- >> and to your point, there's so many things happening geo politically. the risk is a spike to the up

side which of the stocks do you like the best right now and then i want to ask you about natural gas. on the oil, on the energy and production, production piece of it the oil majors, who do you think would be the best investments beginning today? >> as you know, the oil prices in goldilocks, 90 environment, you can pretty much buy anything on the high side shell has a similar asset base sun core has lagged but has refining we've seen marathon petroleum today, a great story, have very good refining results. they're pretty much all working. long-term runners and riders, the permian players. they've all got much better strategies much better management and they're altogether much more attractive and as i said, our main concern at this point is really whether we spike into a recession type oil price. >> right >> with those two really having a problem there.

they all look great. >> we always love the hess trucks let's talk natural gas for a moment that's been spiking a lot lately what comment would you offer for investors curious if they should be getting exposure. >> welcome to become very late i think having said that, we were all quite bearish about natural gas simply because you're maximizing the demand side somewhat here, because of infrastructure limits. again, the administration's proven itself not to be helpful. to really developing what we need to develop which is natural gas to offset a higher levels of interruptible power for things like wind and solar. we should be encouraging gas pipelines. new england getting -- insane when you could be using gas. basically it's not an obvious thing to do to buy gas right before it takes a storm in february, but it's interesting that the back end of the trip was moved audiotape lot. the futures prices moved as well and generally the picture for

u.s. natural gas is excellent. i don't think it will stay up necessarily as we are right now, but obviously you've seen that europe is really depending heavily on u.s. natural gas imports. so the secular natural gas story is great i'm just not convinced they'll have one in february before it takes to storm >> true. fair enough. thank you. we'll check in soon, i hope. >> thanks. still ahead, rates are on the rise, but home buying and refinance demand remain strong we'll explain why next >> and we want to show you shares of paypal at session lows and on pace for the worst one-day loss ever. this was a $310 stock in july. we're at $130. remember, you can catch this show any time anywhere by listening to and following the exchange podcast while you're there, check out conversations with kelley where i have extended conversations with key players on topics of personal interest. you can find it wherever you get your podcast

a strange dynamic in the housing market the home building stocks having a rough start to the year but seeing green lately. while the lenders lag. we have that story. >> mortgage rates are rising sharply, but demand for both mortgages and new homes is strong not exactly what you would expect last week the average rate on the 30-year fixed hit a two-year high at 3 .78% and rates continued to move higher still, mortgage applications rose and 18% jump in refinances. that was the holdouts. rushing in to get the last of the low low rates. demands for loans to buy a home have been rising and that's what the big builders are saying. yesterday they reported earnings today dr horton and they both beat expectations, both cited strong demand. you see the stocks higher today. one problem both builders said they are continuing to restrict

sales to manage what they can produce. still having issues with supply chain and labor shortage horton's chairman said in a release housing market conditions remain very robust and we are still selling homes later in the construction cycle so we can better ensure certainty of the home close date for our home buyers. but it's this interesting split. while the builders are beating the lenders are missing big time the to be is just getting crushed because of the rising mortgage rates and the expectations that we'll see so many fewer mortgage in volume later this year. >> and it makes me wonder, are these stocks at slightly different phases of the housing cycle where one is a leading indicator of the other, or are they just in totally different businesses >> well, potentially so. because most people do need a mortgage in order to get a home. and so we do expect to see home prices start to level off because you have these higher mortgage rates, but if you start to see that purchase volume

demand for mortgages fall even more, that's going to be that indicator that home sales will fall as of now, though, still this weird split. we're still seeing demand for homes. it's just a question of when we hit that affordability level that the rates are too high, the prices are too high and the buyers can't do it >> i know plenty of people looking for one and got sick of bidding wars thank you so much. coming up, qualcomm has beaten earnings estimates every quarter since 2017 and will spotify shed any light on the joe rogen controversy

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keep yours ahead too with reliable connectivity and secure solutions on the network that can deliver gig speeds to the most businesses. and get access to over 20 million wifi hotspots from coast to coast. so no matter what big event comes up, your team can be ready for what's next. get started with fast and reliable internet and voice for just $64.99 a month. or, ask how to get a visa prepaid card with a qualifying bundle. welcome back, erveg. let's get to earnings exchange on key three tech companies reporting on the heels of alphabet's blowout report last night. first up is qualcomm, zero sell ratings on the street. one of only two stocks positive on the year. here is a story on qualcomm. todd gordon has the trades today, the founder of new age wealth advisers.

welcome, guys. kristina, what are we watching for? >> well, much like other semi conductors in the space, we're expecting revenue growth, in this case with qualcomm, $10.4 billion. but the avenues, the drivers for this growth, we're expecting to come from 5g technology. we know that qualcomm launched the snap dragon 8 gen one platform think of it as connecting everything from aei to blue tooth to gaming. that's one avenue. the second avenue is the auto sector during the past quarter qualcomm announced a partner with bmw to help with the driver assistance technology. think of the screens in the car, and it's also working with another car maker. last but not least, apple. apple is qualcomm's largest customer and apple said they're working through the supply chain issues, that could bode well for qualcomm the company itself is pretty cheap compared to the competitors trading right now at about 16 times forward earnings.

>> wow todd are you as bullish on it as the rest of the sell side? >> yeah. that was a pretty compelling story. i am not we don't hold it in our portfolios you know, it's -- it's been underperforming for most of 2021 we hold broadcom instead it's got a higher dividend qualcomm is only 1.5 broad come is about 2.7. qualcomm has been underperforming in semis and the broader market until they broke higher in the q 4 earnings we have held that support in the pullback that we've seen lately. we're on 168 i am interested to get exposure here i think there's a lot of bullish reasons to look at the stock into earnings. last quarter the ceo said they navigated supply chains really well kristina said their 5g upgrade is strong. they launched the snap dragon gaming platform which also helps

with that bmw autonomous driving. don't forget qualcomm chip powers the oculus headset. i'm warming up to it i really am. i'm warming up to the stock. i'm going to put a bow on it and say i actually might trade it just do a little trade through earnings here. and then add to the portfolio. just to finish the point, don't forget, they power ok coculus also they just announced they opened a patent dispute. the court of appeals reopened the patent dispute with apple. qualcomm might get another shot at this. i'm getting bullish. >> kristina, you won him over. >> wait. if i were to think long-term, maybe not so bullish, what about all these tech companies that are creating their own custom chips? not enough people are talking about it apple is working on the custom

chips maybe not designing, not manufacturing, but i think this is a conversation that we could have maybe in the near-term because this could really hurt a lot of chip companies. five or ten years from now >> any final comment, mr. gordon >> yeah. she's saying qualcomm is a different company so they have autonomous driving, internet, mode m it's not just all about chips. apple said it in the report, they are -- even if hardware sales grow and iphone, companies like this will continue to be profitable, specifically apple there's a lot of opportunities for qualcomm, and i think they recognize that >> all right we'll leave it there let's turn to m memeta reporting for the first time since renaming from facebook the shares are flat since the rebranding in october. we bring in julia borston with the story. they have high expectations. >> it's worth noting that

analysts expect facebook's revenue growth to slow it's expected to grow revenue just 19% that's down from prior quarters and facebook has give an number of warnings of different things for investors to watch out for i think after google's overall better than expected report yesterday, expectations are high we see that shares are up today. but it is worth noting that youtube revenues did fall short of analyst's expectations. it will be interesting to see how that plays out in meta's results. three key things to watch for here one is the fact that there's that apple operating system change facebook warned it's making it harder for them to target ads. how well do they navigate around that another is the fact they're going to grow their user base and engagement numbers the user numbers in the u.s. have been flat or even down in prior quarters, taking a close look at those numbers. those are some key things to watch there. and then, of course, this broader question that impacts all these advertisers. all these brands are how much

have advertisers pulled back as a result of those supply chain constraints in the fourth quarter? so taking a look at those. a lot to talk about beyond the shift to metaverse >> todd, again, we've seen strong performance from big tech so far that it kind of raises the bar for facebook, except that the stock trades more cheaply. it's probably the least loved, maybe even those days the least owned of the group and some revenue declines people may be bracing for >> right don't forget, i'm used to this myself they're not a technology stock they're considered a communications stock we have a small position in facebook it's almost a token position we rebalanced the growth portfolio at the end of last year we cut it down there's a strong quarter coming up the margins are strong the gross margin is -- ebita is

expected at 52 6% drop with this drag on investing in this virtual reality. they're looking at 13.96 a share including the $3.85 today expected next year they're expected to make $14.30. that's only a 2.5% growth rate for a company spearheading metaverse and that's cheap at the s&p multiple so little cheap for me despite everything they have gone thr through. yep? >> spearheading the metaverse, oculus is doing well but do they have a metaverse to speak of >> no, no. very few people do i have being that i have a small position i'm hesitant to be bullish on the metaverse with their ability to develop hardware that's form fitting and

works. that i need to bring in the virtual lab engineers to make something that won't mess up the hair and leaving spots on the faces. i think every company you speak to small companies, apple, five to ten years from this making a difference in our lives. i don't think we have to look to next year to be a game changer. >> this is not only the first quarter since they changed the name but that facebook's breaking out the reality labs division so they're reporting the results for the family of apps and then breaking out reality labs to show which part is losing money. the reality labs and clarity into oculus and maybe even some indication of

what is next. >> maybe they should have called them oculus. we'll move asplong to spotify. >> this is going to be a great one. >> go ahead. >> no, no, no. no, no too built up listen on cnbc i did a "trading nation." i think i did the first options trade in virtual reality on the beach put a trade on facebook. it's amazing what they have. last thing i did a tour of the white house with obama i felt so patriotic. it will change our lives i'm sorry. >> 60 secs julia, spotify can earnings change the story around

>> i think though we have seen positive analyst notes and an indication they moved past the joe rogan issue and even though the stock is down right now there's a bullish note that they are expected to cross $1 billion for ad revenue for the year. >> lall right. todd, you get about 13 words are you buying or selling spotify? >> not buying. they have a third of the global market share apple is in second at 15%. tech crunch followed rogan there's little cancelations or reduce in duration i don't own it i'll watch with interest. >> you are the best to argue for the position you don't have.

hear the great things about it >> i'm obliged to be a fiduciary. >> i love it thank you so much. it's going to be a busy afternoon. spotify ceo daniel ek is tomorrow on "squawk on the street" at 10:00 eastern. ai tech imbeds in the ceiling. this is a change of the future of traveler demands. shares have doubled since the 2020 lows. all the details next

welcome back the pandemic not just changing what we want from our employers but impacting the expectations coming to travel seema mody has that story and the hotel chain taking steps to accommodate the changing tastes. seema? >> that's right.

marriott stephanie linnard said there's a blending of work and play and the reason they're looking to redesign the layout of the rooms. >> think of the murphy bed of the future so the bed goes up into the ceiling and a desk and a wok space comes down and then another button to bring in a couch and a television and a living space. >> the design still in testing is seen as another way for marriott to compete with airbnb. it did launch a rival home rental service but the success also depends on the broader travel recovery which is impacted by omicron. >> seeing with the omicron variant is bumps in the recovery

but not stopping it. we had a strong holiday season at the end of the year. >> earnings on february 15 will give us a much-needed read on when business travel bookings are expected to rebound. this is a travel recovery led by the leisure traveler. >> the bed from the ceiling or going up into it a grabbing attention. >> pretty cool. >> because owe need to pack a lot -- if they had a zoom setup with ring lights and all the rest you can leave the bed there and still have the function. >> i think what we are seeing from the pandemic and the conversation is that the traveler wants to do many things taking a trip and not only to take that zoom call and sleep at night but workout and invite a friend over. all the things you can do at a home and vacation rental they

strive to do at a hotel. multifunctional use without expanding the footprint. when you expand that real estate can be costly. >> the bed in the background is the cringey thing of zooms and makes us feel unprofessional. >> i sleep when i see a bed. >> sometimes on the laptop in bed the zoom that does it for "the exchange." "power lunch" starts right now ♪ especially if the bed is unmade, of course. welcome to "power lunch. what's old is new. what's new is old. the disruttive players in payments, retail and energy going down and the shares of the traditional names are surging. crude price spike. the world east oil