level. i think it goes higher than that >> and downtown josh brown >> berkshire hathaway b share is a horse all year two points away from a record high has always right components under the umbrella in terms of the sectors working this year. i like this name >> good stuff. thanks for watching. "the exchange" is now. >> hi, everybody, i'm kelly evans. everybody is talking about the ten-year yield we're this close to 2% for the first time since the pandemic hit. we're also bracing for another 7% plus cpi print tomorrow morning. we'll look at whystocks are rallying in the face of all of this pfizer shares are d-- analysts wanted more. we'll talk to the ceo momentarily. and in earnings exchange, we're looking to chipolte, msg

entertainment and lyft first, let's get to the very latest on markets. dom is here with the numbers >> we're near session highs right now. doing pretty good damage to the up side for a lot of the markets. the dow industrials up 1%. that's roughly 340 points to the up side. the s&p 50045.18 the last trade. that's up about 35 points. the nasdaq composite currently 14,173 157 points to the up side. 1% plus gains. the nice move higher as for what is driving the action, many company specific headlines are in certain parts of the markets driving things. overall, check out the stocks most tied to the economic reopening. that covid pandemic recovery type trade to that end, you look at travel and leezture related stocks, hospitality names, american airlines is up 4.5%. mgm resorts up

expedia and live nation up around 3.5%. that so-called reopening trade, this bet that things are going to get back to normal and people are going to get out and travel, that's a leader today so far one of the stocks that's not participating to the up side today. general motors we've talked a lot about the competition in terms of electric vehicles and the legacy auto makers and what they're doing. today's downside, about 2.5% it was done 6% at the lows putting it at one point at the lowest levels going back to august of this past year if you take a look at general motors overall, you look at that stock and the reason why is because morgan stanley downgraded this stock from an overweight rating to equal weight he's cut the price target down to $55 they're changing methods and it's driven by the assumptions that gm has given out new forecasts for the coming year. they think the growth is slowing. they're changing the rating. that's what's driving the downside down 2.5%.

off session lows back over to you >> dom, thank you very much. we appreciate it my next guest says that fed tightening is a foregone conclusion that means choppy trading ahead. he has three names he thinks investors should lean in on the market joining me is the ceo and chief investment officer of summit global investments david, welcome it's good to see you again >> thank you, it's good to be on glad to be back. >> you seem to be of the view that the fed is behind the curve here as we hear people warning, yeah, whether from -- to date as dave yesterday, some of the long-time e con and market watchers are saying it could be a trickier environment for stocks not a disaster, but what are you telling people to do about it? >> well, there's some specific things people can do, and depending on your portfolio, but let's face it. inflation is higher than we want it to be everybody is buying now. not worrying about later the january cpi report coming out thursday is a big deal the market is going to watch that closely and whether it's under the

estimates or over the estimates is somewhere around 7 %. and so yeah, the fed is behind curve here and they painted themselves into a corner interest rates are going up. we've already seen that just in today alone. but in the last two months they've gone up. and so i think that's continuing i think we will see the yield go above 2 two here, and continue and so what they can do is look for companies that can pass along some of this if you will, this inflation look for companies that also have high cash flow, great profit margins, or in an area of the market that's going to do well you tacked about gm. lest talk about ford ford is a solid management company. electricity is the thing in motors you're seeing it with gm redoing estimates and outlook. ford the opposite. they cannot build enough they're starting to try to slow down orders. you have the lightning truck and new mustang which isn't a

mustang but looks and drives great. this is a low pe we're talking less than 10 high yield, low pe recent pullback. i think it's a great opportunity. these are some of the names i think you want to look at. >> and thank you, by the way, for correcting me on the cpis on thursday it feels like tomorrow the importance that it's taken on for the market. you like ford here for all the reasons you described. you also like nike and meta. metain particular. why do you think that is a stock that people will want to be in for the duration of the year >> one of the things we do here at sgi is we focus specifically on downside risk and meta has had a ton of downside so is that flushed out about the only thing right now that's not flushed out we're looking at is some of this positioning in europe with the agreements they have there, whether they're legal or not and whether they shut down instagram or facebook in europe. the reality is they're in a space that is exploding. this meta-verse. they're changing their ticker

symbol from fb to meta they're all in on this spending $3.3 billion of the growth i think the pullbacks is a great opportunity to build your position i do not think not only is i think mark doing a great job at what he's looking at he's eager for growth. we have high profit margins, above average growth and cheap stock in the tech space. i think this is a really good opportunity to build positions here i think you're going to see both retail and institutional buyers, and let's face it. at christmas time, the oculus virtual goggles were the hit i think that continues >> yeah. >> and so i think there's a lot of risk flushed out of the stock. the risk is not to the downside anymore. with the volatility in the market, this is a position that i would look to continue to build. >> i know you think omicron has helped nike to some extent david, we appreciate your time today. thank you for joining us we'll talk about how to navigate the markets. >> you're welcome.

thanks >> tadavid harden a quick programming note joining us tomorrow, right here on "the exchange" is bill miller miller value partners chairman and chief investment officer we'll talk to him around 1 p.m. eastern. you won't want to miss it. all right. this week's cpi report is expected to show the largest yearly jump in consumer prices since 1982 it has rates moving higher and the fed in a hurry to shift from policy easing to tightening. we spoke to david who said the fed needs to reduce the size of the balance sheet if it wants to have an affect on fighting inflation. our next guest says a rapid rundown of the balance sheet is likely to create havoc in the markets. he is with us. glad to have you >> thank you >> rapid versus slow versus should they do the balance sheet at all there are a lot of variables up in the air for the fed how quickly do they need to move

in your view >> not very. i mean, they said 1,000 times they want interest rates to be the primary tool entre rates send a signal to the public that the balance sheet doesn't make rounds of the front page of the media and the balance sheet is a technicality nobody understands i don't get this head-long rush on the effort of some of the members. some of them seem keen on diving in i don't see the logic. if they're that worried about inflation, they need to raise rates more quickly the balance sheet pressure seems to be internally driven. it's true. it's huge. but i don't think it should be the primary tool that they use to fight the current round of inflation. they can deal with the balance sheet later. >> let me go back to what dave said he comes at this from a market point of view, not academic. his point is they've done $5 trillion of quantitative easing that has had a real effect on the economy and it would seem silly to leave it sitting out

there without trying to run it back down. in other words, to reverse the easing effect you have to run it back down. in order for rate hikes to even have as much potency what do you make of that liquidity argument >> yeah. well, their liquidity argument makes a difference in markets. i'm worried the fed would take it back and trigger an unwanted and unnecessary crash in the stock market the thing is at reversing the quantitative easing isn't going to take back stimulus put in the hands of the private sector. the fed printed the money to allow treasury to send enormous stimulus checks and make other payments through unemployment benefits and various other things to households and businesses no one is proposing taking that money back the money that people saved that was created by the fed that sat in their bank accounts isn't going to go away when the fed reverses or if the fed reserss its balance sheet expansion. it's going to shrink bank reserves instead this is not the reversal

that money has sat there and unspent. the balance sheet maneuvering to me if they do it, is simply going to raise the risk of an unnecessary market event which will feed back to the real economy. and as people, as they're doing it, the public won't understand what they're doing or why. that's why interest rates are useful they send a signal that everybody can understand oh, mortgage rates havegone up credit card rates have gone up that's simple. fed shrinks balance sheet? what does that mean for the average individual if they want to get a grip on the economy, they need to do that >> let me ask you how many rate hikes if you can quickly, bank of america came out with seven more people are in the four or five camp. since you would like them to lean on this tool quite a bit, would you be up there in the higher end of that range >> i'm at 5. i think they do three of the next three meetings and go more s slowly right now the market is in

competitive how high can we forecast the fed phase of the cycle. we've got there right now. i think some of the expectations have to be dialled back a little bit. but they need to tighten rates are zero and inflation is well, unfortunately, heading to 7% they have to move quite quickly. but they don't need to keep going at a breakneck pace indefinitely they need to get a grip of things and be more measured after that >> it's a great debate thank you for joining us with your perspective on that today >> thanks. all right. in the meantime, a three-year treasury note went up for auction. all right. not soho hum anyway these days you should see how much foreign interest there was once again. rick santelli with the results rick >> boy, the foreign interest is the key to this auction. 50 billion three-year notes. the first leg of the february funding, this tranche is threes, tens and 30s of 110 billion.

1.592% higher than the unissued it tailed a bit. i gave it a b plus the current 2.4 3 roughly, but the foreign category referenced, my database goes back 20 years 68.5 i have one more month that equals that. that was in november of '09. none that are higher terrific and 11.1 is the other extreme. the direct bidders was the smallest perrecentage of april since 20 20. the dealers only took 20.3% of the auction. that's the smallest amount they've ever taken on my 20-year run of history and the reason is because those foreigners pretty much ran the table first. kelly, back to you >> they are keeping our borrowing costs down and stimulating our economy. they are taking the sting out of the tightening cycle for now rick, thank you very much as always our rick santelli.

now to pfizer. shares at one point were flirting with the worst day since summer 2020 after mixed resulted this morning and giving full-year guidance that missed estimates. for more on the quarter and what's ahead, meg is here with the ceo of pfizer. meg? >> kelly, thanks so much albert, it's great to see you. thank you for being with us. let's start with the quarter and your forecast. you forecasted $54 billion in combined sales of your covid vaccine and your anti-viral drug on top of the rest of the business but the stock is down as kelly was pointing out what do you make of the investor reaction here? >> you know, when it comes to stock prices, it's never a sprint it's always -- you know, you always have volatility because some people are taking, let's say, opportunities from prices, i think we should look beyon what happens and i think the numbers that we gave for guidance for the year were a record high not for pfizer but the industry.

for the first time in 100 billions of revenues on the midpoint of guidance it's nothing but have not been happened before. >> and, of course, one of the major drivers of that guidance is your anti-viral pill paxlivid forecasting $22 billion in revenue for this year. that's a number that analysts said they expect could go up because you could sign more supply deals for it. you also showed how the manufacturing supply is expected to ramp really a lot toward the end of this year at what point are you expecting it will be a lot easier for people here in the united states to access this drug, that it will be more widely available. >> every month will be better than the previous one. we are giving way more in february than march, than we gave in january. way more in march, and i think significant point starting in april. so i think pretty soon they will be, let's say, way easier for

people to find it. right now the states are working reasonably well. most of the states immediately order all the allocations the u.s. is giving them, which is amazing what we are giving them. and this number right now is higher than what used to be a year ago, for example. the first month of the vaccines. as you remember, we have more product than the system could absorb now this is not the case also i want to clarify something. when we speak about the guidance and forecast, for the remaining of the business, it's predictable, we are giving -- as usual, a forecast. we calculate mouch we think, for example, our product will be used at the current price and what that means financially before us. when it comes to covid vaccine, or the pills, we are not following this in the process. we are giving only the numbers that are coming from signed

contracts. or contracts that are about to be signed have been agreed to terms, volumes, prices and are about to sign. this clearly is not the way that -- forecast they are not having visibility with the contacts. they are looking to see how much -- i think this was the disconnect clearly it's expected that more contracts will be signed because right now for paxlovid you are in -- with governments around the world. and for otherings as well there are governments. >> that makes sense. on the vaccine, on friday we're expecting to see the data in your fda briefing documents for the vaccine for kids under five. a lot of parents are wondering how optimistic to be about getting this vaccine and getting access to it sooner with these two doses. how optimistic should parents like me feel about having a protective and safe vaccine with

two doses as it gets through the fda process relatively soon? >> i think the chances are very high, to be for fda to approve it and for the acap, the cdc to recommend it of course, i i can't speak about them we need to wait for the process to go through. so that the committee of experts see the data and also the same, given everything, i think that they will be pleased with the data, and they will approve it >> well, i definitely can't wait to see it. i also, of course, have to ask you about a topic. you got a lot of questions about it on the call m&a. you aren't shy about saying you've got a lot of fire power, a lot of cash coming in and you're not going to hold back on potentially spending it on something potentially large. how big of m&a deals are you looking at potentially >> yes

we don't spend we invest. the investments will go to science. it's the right thing for the company right now. and the right thing for the world right now. we believe that there is enough sub strait out there, scientific sub strait that we could add dramatically higher volume as we did with the partnership with biontech, and more of that will be seen. we believe that by deploying capital in the next several years, we should be able to get science that for -- will be translated in risk, revenues, at least 25 billions a year 2030. that's on top of whatever our current business will do, our current pipeline will deliver, and on top of whatever the current community and paxlovid will do by the end of the year >> that's not small. thank you for spending this time with us. we look forward to catching up with you again >> thank you very much thank you. our meg with the ceo of pfizer

as we keep an eye on the shares toad coming up, the first bitcoin mining company is making the debut with over $1 billion in assets under management. what's in the fund and will investors show up? we'll ask the ceo behind the etf next chipolte, lyft, and msg entertainment, can last quarter's results give the stocks a much-needed boost we'll dig into it ahead on earnings exchange. at fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect.

welcome back the first ever bitcoin mining etf is trazing on the nasdaq it's open for trade. it's up about three quarters of one percent. ticker is wgmi it's an old joke we're going to make it it has a large focus on renewable energy and the largest timing misses the plunge some of the biggest holdings have seen recently marathon block chain down over the past few movants clean spark down more than 50% let's welcome in the co-founder and ceo of elkira investments. why do you think you're the first ones to come to market with this? >> thank you for having me on today. it's really exciting today

it's trading well out of the gates. spreads are tight. trading volume is good over 50,000. i think that we're in a really good placement, because, again, not only is this a great opportunity to have exposure to bitcoin mining but specifically we have a green lens on this fund to ensure that it's really taking advantage of the climate positive portfolio narrative that's so important in the industry right now >> yeah. i think i read that more than 80% of the holdings derived more than half of their energy from renewable sources. better than the u.s. energy grid here's my question from a trading point of view. it's my understanding that you often need a lot of short interest to launch an etf. so should we read from this launch that people are happy to take the other side of the bitcoin mining trade or maybe it's a little late for that. maybe the move has already happened >> yeah. good question. good question. definitely what we're seeing today at least is just good

strong demand. i think that there's been a lot of pent up demand in order to have an equity theme etf that provides that exposure to bitcoin and bitcoin mining, but especially ensuring that there's that climate positive portfolio message. so to your point, you know, the top five holdings in our fund have 90% renewable energy use. i think that's been very important, and that's actually what we've been hearing from the advisers, financial advisers, raas and other money managers that has been the reason they haven't jumped into bitcoin mining previously. it's really built for hem. >> so there's been this kind of long-standing debate about whether to invest in gold through the commodity itself or through the gold miners and everyone likens it to those who sell picks and shovels during the gold rush itself there is a lot of interest in the idea of being exposed to bitcoin mining as opposed to the underlying, although they seem

to mostly move in correlation with each other. so other than the esg focus you mentioned, who else do you think this etf would appeal to >> very good question. and you're absolutely right. there's absolute parallels to the mining industries. i think in one way it's not so novel in the best of ways. for money managers who can just understand that you are investing in bitcoin miners and that's providing the same indirect exposure to bitcoin that investing in gold miners provides to gold or oil drillers to oil even though this industry is newer, the thesis is the same as it's been for decades when compared to other commodity plays. and i guess to note what is exciting about this one is just that bitcoin miners have historically realized relatively high profit margins. that makes them a very attractive investment for people seeking to further diversify their portfolios >> thank you we'll watch it with interest

appreciate you joining me today. leah wald with velkari investments. coming up, peloton on pace for the best day afterafter axing the embattled ceo. we have the details next with the stock up 27 % to $37 a share. plus we're sending one of our own into the meta-verse. we've look agent the big brands putting real money into the meta-verse thexan iba aerhie chges ckft ts.

welcome back not a bad day in the markets with everything going on with the rates, the dow is 40 points off the high a 1% fwan. it's nearly matched by the

nasdaq s&p up two-thirds of one percent. steel and aluminum stocks are on the move after the u.s. and japan struck a deal to roll back the trump era tariffs on steel alcoa, century up more than 11%. slx on pace for the best month since last march on the flip side, the fin tech names are under pressure robin hood tracking for the record loss. apple announced a new tap to pay feature for businesses that would seem to compete. block down 1%. but here's some of the chinese stocks take a look at the tech names. posting back to back weekly gains for the first time since october. it's flat on the year. around 36% with a 3% gain. over now for a cnbc news update.

in minneapolis authorities have heired a 17-year-old in connection with a homicide investigation that led to a s.w.a.t. team fatally shooting ahmad lock if you plan on betting on the super bowl, you're not alone. the american gaming association expects 31.5 million people will be putting money on the game total bets are predicted to jump 78% from last year to more than 7.of billion on the news tonight, for the first time in 20 years major league baseball has reportedly stopped testing for steroids find out what's behind the reported change tonight at 7:00 eastern. and in spain a retired doctor is fighting hard to keep in-person customer services at banks across the country 78-year-old carlos san juan started a petition and has gotherred over 610,000 signatures he says many people his age feel left out by the shift to online

banking. he personally delivered the petition his slogan on his website is i'm a senior citizen, not an idiot it seems to be getting quite a bit of support >> i'll a millennial, and i feel the same way a lot of the time >> agreed. >> thank you very much still ahead, could driver supply issues derail lyft? is msg entertainment >> we have the action, story i"the exchange" 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

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we're more than halfway through earnings season. there are big names on deck today. we are looking at lyft, msg, and chain entertainment and which i bolt let's start with lyft. up more than 3% ahead of the print but has fallen 24 % over the past year. analysts are watching how omicron impacted demand last year and whether incentives are helping to attract drivers without hurting the bottom line. here with the story on lyft is our very own dom and dan has the trades today

dom, start us off. what are we looking for with lyft >> you mentioned the 24% decline for lyft years, it's outperforming uber which lost 36% during the similar time. let's start with the estimates lyft is expected with earnings per share of roughly $0.09 total revenue about 941.5 million there are. the result could show both profits and revenues better year over year. the last three years a roller coaster ride for sure for the ride hailing company even with the pandemic and the subsequent recovery, the near in term medium term momentum has been to the downside for the better part of the last year investors will look at the other ancillary metrics like the number of active riders as well as how much each of them generates. lyft can be volatile around the

earnings releases. over the last eight quarterly reports, lyft has traded up four times and down four times with an average move, up or down, of 8.5% and kelly, right now the options market is currently pricing in a move of up or down 14 .5% just to give you an idea of how volatile it could be this is very much going to be a story not just about the current or the previous quarter ups and downs bottom line and top lines but also what the forecast and outlook will be for lyft and the riders >> we could see big movement on this front dan, i think you've said in the past you're not a huge fan of their business models. what would you do with the stocks >> well, i think you have to like the stock at this price there's going to be as just mentioned, a tremendous amount of volatility. it certainly is getting caught on all sides by changes and what's happening in the economy or in pe compressions, the shift from growth to value it has all of these obstacles. that having been said, the lyft

has done well, at least compared to its comps even though on a revenue basis it's struggled because uber did a much better job of pivoting in 2020 to go onto uber eats and being part of the stay at home delivery model. lyft pretty well took it on the chin what's happening, though, where i see an advantage for lyft is that they're primarily domestic. they've u.s., canadian we're opening up here. even in california and mass mandates are about to come off i mean, they are going to be a very pure play as we start to reopen so when you look at the range of where it is now, this is a -- it's been a darling growth stock. it's a little out of favor right now. it's trading at a 23 pe. if you can have good numbers the street is looking for earnings to be up over 60% but if you can see decent numbers for fourth quarter, you get reasonable guidance, then this is a stock that really could join the rest of the growth crowd and even be a 40

pe >> interesting >> i think right now it's a buy. >> are you looking at 2023 earnings if we look at the next four quarters, the pe would be higher >> absolutely. i mean, you're not -- i'm not talking about a double we're not looking from 23 to 44, but certainly look, you could see a pop of at least 15% in the stock from where you are now and you just need some reasonable news that they don't really disappoint. the big if is going to be how bad did they get hit by omni-in december and if that looks reasonable, i think you get a decent pop in the stock. >> interesting from what dom said about the options market, could happen in a moment or a day. we'll see. be sure to catch lyft co-founder discussing these results as well on "squawk box" tomorrow around 8:45 a.m. eastern time dom, thank you dan, stay right there. let's move onto madison square garden entertainment they count concerts and nonsporting events the shares down nearly 30% in the past year.

our audience knows there's a favorite pick of charlie's julia has the story. what are you watching for tonight? >> well, i would say one thing i'm not going to be watching for is comps with last year. and that's because last year the live event space was so quiet. it doesn't make sense to look at comps. it does make sense to look at the impact of omicron on this past quarter to get a sense of how much people change their behavior because of omicron and then any guidance, that's really where investors are going to be looking to understand bookings and also whether different acts are scaling back or whether they're still committed to their performances going forward another key thing to watch here is betting msge has partnerships with a number of the big sports books such as draft kings. we're going to have to see what they say about the potential to grow that business >> all right dan, if you're tactically interested in lyft here, does msge tickle your fancy the same way? >> yes julia is correct

there are no comps there's nothing to compare it to look that the bookings and shows they have planned for the next six months which looks strong. we manage money here for a lot of people in l.a. and the entertainment business i can tell you they are back out on the road. the venues are opening up. performers are performing. they're making money again they want to be out there. and right now what you're looking at in the show bookings looks very good for the next six months but i think the play here which is why we like this stock, is that all of those things are going to be positive their revenue should get back up to be a little below where it was in certainly in '19, but well back on the road. but the play is it's an asset play this stock is selling below book value. i think you have to look at it as an asset play right now and so it's a strong buy with, again, reasonable news that we can see. i mean, we're not going to shut the economy down again the shows are going to go on

and they're just cheap right now. >> all right msge, the spotlight is on them in this next report. julia, thank you very much all right. finally today, chipolte, one of the rare names with pricing power in the face of rising costs. shares down 17%. it's been a monster performer. zero sell ratings on the street. what are the key metrics to watch? kate is all over it. >> kelly, well, the key metrics will be same store sales and also margins how the inflation is impacting the restaurant operating margins here you mentioned pricing power. chipolte is one of the rare names that really does have it in the space and last quarter we heard from executives that they were really confident they could pull the pricing lever even further and customers likely wouldn't pull back if needed they noted higher costs in beef, in freight, and they were raising menu prices slowly and just slightly. and really not seeing as much into consumers pulling back. they raised prices in june to cover higher wages

that's another thing to watch here a close second is the digital sales. that is very important with chipolte it was a little less than half of all sales last quarter. another thing is the loyalty members. last quarter it was just under 25 million loyalty members it's one of the fastest growing programs in the space we track and digital and loyalty really allow it to kind of switch over and rely more hale on digital sales when it's having staffing challenges in restaurants. it's interesting you mention zero sell ratings. a lot of investors have confidence this is one company that can continue to absorb the price ikes >> we're out of time let me boil it down. you would prefer something like mcdonald's to chipolte >> that's correct. i think they're more priced. they'll have to grow at 30% to maintain the pe. if the stock goes down any, i'd buy on weakness as a growth play, but i would hold and see what happens with the earnings >> thank you we'll leave it right there

a programming note, the ceo will be on "closing bell" to discuss the earnings stay tuned all right. that does it for earnings exchange up next, the ceo is out. jobs are being cut and a production plant in ohio is scrapped is peloton going far enough to regain the footings? an activist shpuing for change says no. we have the details next - hiring is step one when it comes to our growth. we can't open a new shop or a new location without the right people in place. i couldn't keep up until i found ziprecruiter. ziprecruiter helps us get out there quickly and get us qualified candidates quickly. they sent us applicants that matched what i was looking for. i've hired for every role, entry-level technicians, service advisors, store managers. ziprecruiter helps me find all the right people,

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peloton named an executive shaking up the board is it enough let's bring in a branding crisis management in. dean, welcome. a analysts are confused of the strategy do they need a period of retrenchment why is the ousted ceo as executive chairman still speaking up about the future direction of the company what's the dean advice here? >> well, my advice is that peloton is a brand in crisis but any job of a ceo is to turn hardship into an opportunity and the franchise peloton built means it has a possibly great future ahead of it depending on how it is run. it's a question of how quickly can mccarthy hit the ground running. excuse the pun we has a great reputation. he's a terrific piece of real estate with subscription base business models. i believe if he gets it right, it has a great future ahead of

it, finding the right suitor with a deep pocket to make the brand herald and maintain the success going forward. >> what should they not do right now? >> what they should not do is keep positioning themselves as a luxury provider of high-end equipment. -- >> but that's what they are, right? >> but they're not, actually i think they're beyond that. that's their opportunity to me they're not so much a high-end provider of equipment they're an experience platform i know quite a few peloton users, including members of my family, and they love it not just the equipment they love the experience they love the community. they love the experience they like the interface. and so me there's the opportunity for peloton. even beyond being a subscription-based business model, it has a strong brand ahead of itself, even though it collapsed to a 12 billion brand value. but the franchise is enormous. and i think any suitor like an amazon or nike sees that opportunity for the franchise that they built. they are a true brand.

and they've done it rapidly. >> you're right. >> i think it's -- >> i was going to say you're right in the sort of devotion of the users. our own krusers -- producers, our fans are fansof the product. i don't understand how they capitalize on it when the bikes are still expensive and the monthly subscription is expensive. i've thought about getting one, but i don't want to get locked into another subscription product for a long time. how do they capitalize on that while growing the community? >> well, they brought in lower price models their delivering that strategy to bring in more competitive offerings. they'll keep looking at those opportunities. i'm not saying dump what they've got. i'm saying be mindful to maintain a luxury brand. you need to be an affordable luxury brand and many businesses are successful that are positioned in luxury that aren't louis vuitton but they have strong

followings and people love being associated with the brand. >> sorry i'm trying to pack in a lot here if you were an amazon and apple one of the rumored suitors, would you like to see one of the big companies come in here >> in terms of acquiring peloton? >> yes >> absolutely. yes. i think that there's a strategic direction for peloton to take. and there's a lot more up side to go. they defined the subscription based business model but there's more opportunities for peloton as a master brand an just a provider of high end equipment. i believe they have that following. they have that franchise they have brand recognition. that's a huge footprint. and an opportunity for a big brand partner like an amazon to take advantage of that and really generate a lot of new revenue streams for the business going forward. >> very, very interesting. dean, thank you very much. fun to pick your brain we appreciate it >> thank you all right. this auto maker climbing 30% over the past year and charging into ev along with peers

we have the name and the view from the c-suite next. during february we're celebrating black history and featuring some of our cnbc contributors here's isaiah mckinnon with what inspired him to become the man he is today. >> i experienced hatred because of the color of my skin but i used that to enact change. i've met six presidents and countless other leaders, but the one who truly taught me the meaning of building wealth was nelson mandela he inspired me to believe that true wealth is built on education, commitment, fortitude, love, hard work, and sacrifice. that's why i stand tall as i do toy.da ♪♪

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time for show and tell where we show you the chart and tell the story. and toyota is outperforming ford and gm to start the year the north america sales chief told squawk box they're banking

on ev demand to ramp up. >> we think right now, the infrastructure as well as consumer demand isn't the tipping point we're going to start entering and bringing more and more of these models to the market >> again, some impressive outperformance coming up, gucci, nike, vans, those are just some of the brands created for the metaverse already. we have the details. >> they'll inject you or your odtsnto the metaverse. we'll give you a look at the process, next.

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this is what it's like to have a comprehensive wealth plan with tax-smart investing strategies designed to help you keep more of what you earn. and set aside more for things like healthcare, or whatever comes down the road. this is "the planning effect" from fidelity. the metaverse is already here it's in brooklyn where one company is scanning and placing people and sneakers and purses and anything you want into virtual reality. mckenzie is at the studio working with big brands like nike, lvmh, and steve madden what's that behind you there

>> hey, kelly. so i am standing in a photogramatry rig in which there are cameras mounted from every possible angle in order to capture the most realistic depiction of both physical objects and people from my perspective, getting scanned in is super simple i get a three-second warning and in 1/80 of a second, all cameras go up at the same time and it takes less than five minutes to turn all of those pictures into a digital rendering. a 3-d model. there are so many different things i can do with that digital avatar it is possible to turn it into an ntf i can make it a non-fungible token. you can use it in augmented reality, hollywood specific effects and i can put it into the metaverse, a collection of all those virtual worlds in which people play game, buy

property, go shopping. companies are coming to this studio in brooklyn to use this rig in particular to create digital versions of their products whether that's sneakers or apparel, lvmh, asics have teamed up with a startup here in brooklyn it's really exceptional. >> you've got either some amazing moves or the technology can make anyone look that good, in which case me and ty are going to go try it out here in a minute how realare these effort to pu merchandise into the metaverse >> i'm here at nycap 3-d it's still very much in its early days, but you are seeing companies like nike team up with roblox to create nike land, where you can dress up your

af avatars. >> sounds pretty good. people are jealous of all those cameras behind you there trying to get their hands on one of them and you have 250 thanks so much for bringing that alive for us really appreciate it that does it for the exchange here in the old, you know, normal tv world of things. "power lunch" begins right now i will never, ever let 260 cameras in 360 degrees photograph this body, kelly. no way though i do favor a kelly and ty avatar nf thrks. l let's do that gold coins nft. welcome to "power lunch. let the games begin. here's what's ahead. rates on the rise. not just here, but around the globe. a veteran