those are the only two sectors that look good to you? >> i'm more concerned about things in my portfolio >> i bring it back full circle buy energy, buy health care. what was oil 116? >> 113 >> does for us thank you. "it exchange" is now welcome to "the exchange." in for kelly evans and here's what's ahead stocks are starting the way they finished the last six weeks, lower. the s&p 500 trying to hold on to the 4,000 level. ware arer lacking at boaten down stock swz sectors and asking if this is the time to buy or sell. and bitcoin also falling back below 30,000 for now. what's happening in the crypto emarket? why aren't buyers jumping in more plus, a big week of retail earnings we're breaking down walmart and home depot but we begin with don

chu and today's numbers. >> the mix is more to the red. more to the nasdaq composit, which as you know has been the epicenter for volatility in weeks and months the nasdaq is roughly 1 and 1/3% to give you an indication, we were down 13 points at the highs of the session and down about 178 at the les tilting towards the lower end of the trading range so far today the s&p right at the 4,000 level. and down one-tenths of a percent fathe dow industrials. ware with in a multi-day losing streak when it comes to stock volatility this measuress stock market volatility around the s&p 500. we're 28/29. we have been on thiseraciant

very short-term down trend about five or six days in the vix. over the last 200 trading days, we're talking close to around 22 that's the 200-day average still relatively high but coming off the highs. well see if that plays out in today's session. and check out what's happening with meta platforms, netflix, comcast. ibm advanced microdevices. they've been out performing in today's trade in the communication sector ibm holding up relatively well compared to about everybody on the screen meta platforms up 1 1/3% and of course, netflix on positive analyst comments. >> when you call it advanced

micro devices, it sounds like -- >> the principal's office. >> that is the name of the stock. and fintech out of favor eraciant publicly companies out of favor who cares. sofi jumping a bit at piper sandler despite having been cut in half this year. up today but down more than 50% as rising rates and the federal student loan moratorium take a toll more than 70% off its highs. they're underestimating a potential revenue surge in 20 way to joining me is the analyst behind the call, let's welcome in kevin barker >> again, welcome but why? why now? because there's certainly a lot of negative sentiment that could drive sofi lower >> it's been under a lot of pressure

there's funding pressure and head winds earnings are said to inflect higher, whichy with haven't seen for the last several years for sofi as earnings start to move higher and we start to see that in the back half of the year, the market's going to come back to sofi and with the stock trading where it is, you're going to see a lot of the market start to favor it once again. >> i wonder if there are a lot of investors used to instant gratification. how much crow does an investor have to be prepared to eat before they feel like they're right on stuff that they buy right now? >> of course we got a ton of pushback on the call, especially around financials investors, who look at rising funding costs and price value multiple that is fairly expensive relative to other banks. there's a reason why people were buying the stock a year ago. and the growth the company's been able to produce combined with what i think has changed quite a bit is there's a

deposit base now,b which improves the funding base better than most neobanks we've seen. >> we've just hatd anthony nodo on a few days ago, talking about what he's going to do with the deposit base and perhaps with the interest that, you know, investors, savers can earn on accounts in a rising rate invarmt. especially given sofi now is a bank what does that do for them that gives themed a r an sad vantage over competitors >> it gives them a sticky officer is funding a lower cost relative to warehouse lines. we're selling whole loans in the market that's been continuing to rise costs are continuing to rise for those types of funding sources so, if they can lean on a deposit base to be able to grow and hold loans for a longer period of time, their earnings should move higher >> so, market cap is around 5

foit 5 billion what are the potential outcomes good for investors here? is this an area that's going to consolidate where perhaps somebody tries to take them out for their customer is base and technology or do you expect them to grow organically? >> organically i think they have bigger things they're looking at over the long term if they can establish a good capital base, which it appears they have with the capital they've raised, they should be able to continue to grow at a fairly rapid clip. if that were to continue, you're going to see quite a bit of upside in the stock as long as the market starts to stabilize here >> usually you don't come out and say there's no way i'm wrong about this is there something you're going to watch down the line and if they trip over a particular hurdle, then your call could change >> maybe the student loan reify that happens after the

moratorium ends,y with anticipate that's in 2023. that could be a head wind we're not anticipating maybe there's not a reify putepgsal with rising rates. there's definitely head winds there. maybe the deposit costs are if wing to rise faster than we expected certain laethat could happen and the financial services sector continues to lose money. sofi needs to start to show profitability in the financial services segment in order for a lot of it this to work if they do though, there's a lot of momentum and that will continue to move to the upside >> all right you're willing to take that bet. barker, thank you. meanwhile, there's a growing divide over whether the economy is heading towards a recession chief equity strategist lowering the economic growth targets for 2022 and he sut his year-end s&p target from 4700 to reflect

higher interest rates and slower economic growth. his new baseline forecast assumes no recession but former ceo has a different take, saying recessionary pressures are there. >> do you think we're headed towards recession? >> we're certainly -- it's certainly a very, very high risk factor there's a path it's a narrow path but i thing the fed has very powerful tools it's hard to finely tune them and see the effects to alter it. but i think they are -- i think they're responding well. it's definite laea risk. if i were running a big company, i'd be prepared for it but it's not bakd in the cake. >> very prepared but not baked let's welcome in founder and ceo of strategic wealth partners you think we need to be prepared to eat that recession cake hey.

>> yeah. i mean, when you get stimmy check after stimmy check, unfortunately, our economy is at a point where we're gestrag to take our medicine. if you listen to what jay powell has said over the course of the last few months, he was all about soft landing and then soft landing became softish landing and that became things are going to be painful,b which insinuates a hard landing with the economy slowing, the fed has a dual mandate price stability and full employment not propping up the stock market and despitewhat a lot of peopl believe, not avoiding recessions either i understand there's a high correlation rate but that is not a direct mandate look, consensish seems to believe that there's less than a 50% chance of a recession, that it would be next year,b short and shallow. i disagree with all those things i think the erecession is going

to be longer and deeper than most people believe. i've been saying this for months erse >> is it because you think it's fwo teeing take sustained, significant rate rises that are going to slow the economy down to the point of shrinking and that -- the fed has enough room for unemployment to rise a bit and still be in the mandate? >> i think there's like 11.5 million job openings. as a business owner myself, when things get tight, the very first thing i'm if we tag do is take down the job postings. so, the 11.5 number will start to come down but the unemployment rate won't go up yet. eeventually it will because the fed has to combat inflation. they're going to have to deal with it incredibly harshly if you think about it, over 50%

of the u.s. population has less than 50,000 in retirement savings. do you think they care if their 401(k) daupz another 4%? they don't they want to make sure that their paycheck lasts all the way through the month. if they have enough money to put gas in their car and food on the table. strrs so, inflation needs to be dealt with harshly and i think that means we got to take our medicine >> what should investors be prepared for to happen to stocks in the near term, particularly growth stocks and maybe the broader markets, like those looking at just the s&p. >> in the short term, you could see an over sold balance i do think longer term there is more pain ahead. despite how bearish i sound, we actually did buy stocks last week we've been sitting 17 to 18% in cash went down to 15% now

but we've been focusing along the way on high grading that fort foelio. uving up the quality ladder. our positioning is offensive you take consumer discretionary, that sector as an example. it's been a blood bath in that sector we're buying companies more staples like we added the target, the mcdonald's, the planet fitness those are companies that, in my mind, are if wing to be less impacted by a recession. >> all right by the strip mall it sounds like you're saying. back to basics thank you. >> thanks, john. >> coming up, bitcoin falling again. it is down more than 22% so far in may the ceo of custodia bank joins me to discuss why she thinks price is the least nbtdesting point of bitcoin i've been watching it. plus, take two set to report after the bell today

why walmart and home depot are out. coming up in earnings exchange we're back in two. your shipping manager left to “find themself.” leaving you lost. 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 cal: our confident forever plan is possible with a cfp® professional. a cfp® professional can help you build a complete financial plan. visit letsmakeaplan.org to find your cfp® professional. ♪♪

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welcome back to "the exchange." former federal reserve chairman issuing a warning about crypto

assets in an interview this morning. he said bitcoin is a speculative asset that could face more scrutiny in the near future. >> one of the risks that it has is it could, at some point, be subject to a lot more regulation and the anonymity is at risk taat some point. investors should be aware of that >> well, at some point, the former fed chair making comments as crypto prices continue to decline and investors continue taassess what the fallout would be from last month'sish aooze. joining me is chairman and ceo of custodian bank that provides banking services so, i know that youvr got a different and more cautious approach to these markets. you've got your own, what seems to be ea stable coin issuance,

abbott tell me why shouldn't investors be concerned that these issues with stable coins, algurhythmic stable coins might upset the entire apple cart even for more responsible crypto assets? >> they should be concerned about the stability of algurhythmic stable coins or crypto-backed stable coins, as last week's incident confirms for sure that tds there's real technology in those of us who didn't play the fast money game, who are building for the long term and recognize that we can deliver better, faster, cheaper and more transparent payments using these technologies i'm mostly limiting it to bitcoin. i'm not expanding it to the broader crypto unionverse. these are powerful technology as that will bring us better, faster, cheaper payments

and most leasant -- reece lant ei came across data that wells fargo and bitcoin could go up to a markup of 100 times their cost, is what they turn around and charge to their customers. got to give a hat tip to wise, formerly transfer wise in a letter to the fed revealed all those statistics it shows it's ripe for the disruption >> i mean, there are a lot of growth stocks that a lot of people consider promising. shopify, for example, trading at early 2020 levels or below that. if you had told people in early 2020 that bitcoin would geup to 15,000, they'd have been pretty happy. so with, do you have a point of vau on whether bitcoin belongs at 30,000 or 15? >> well, to the segment, i thimg price is the least interesting aspect

>> but it's interesting to people who bought it at 30, okay >> sure. that's fair. >> do you have a dog in that fight? dayou have a point of view of whether it belongs at 30 verses 15 >> we may very well see another leg done i don't make price predictions but there's so much leverage and bubble dynamic that we're starting to see that correction come from the periphery of the perif raeinto crypto,b and then not yet to the core. but i think it could still go there because there's a lot of deleveraging to do, just like in the broader economy. >> let's talk about what you say is more interesting about bitcoin. what is the positive use case and the businesses that with we're going to see built on the back of it that are if wing to lead to a resurgence in confidence, not just in the price of it but in the usefulness down the lain

nft type stuff >> no, nft's can't be issued on bitcoin. it's a very simple system, relative tamost of crypto. bit it is coin transfers value and in particular transfers high value at a very, very, very low cost you could transfer billions for a there or two in cost and that's what it does well and the scaling technologies, like the lightening network in bitcoin will allow us to, instead of paying visa and masturb card 3%, you can move money through maybe only one intermediary instead of five or six, which is what happens when you use a credit cart. and the cost and the speed and the efficiency are going to go way up we're at the early stages of that >> i get that but to me it almost sounds like arguing for the overall benefit of cloud technology

and therefore, what the price of an individual semiconductor might be why does the value of the bitcoin because the technology it's delivering is so high >> bitcoin is the only truly decentralalized digital asset and it's money that has no issuer because it is decentralized, eno one is going to be able to change the number of bitcoins outstanding. there will never be more than 21 million. they can be divided into 100 million each one, but no one's making more of them. from a scarcity standpoint, the inflation rate is approximately the inflation rate of gold right now and that's going to be cut in half. so, from a scarcity standpoint, it becomes harder and harder to get real on chain bitcoin. from a utility perspective, it allows you to transfer value and the payment piece is what i'm really working on and what

everyone should be watching in the next few years for sure. >> it's an important space we continue to watch and volatile ta thank you. coming up, oil climbing nearly 50% this year and that kind of price surge meant they would turn on the taps we'll look at what some are calling the new age for oil companies. plus cloud stocks were powering higher on friday but today a different story. cloud etf, wcld falling about 4% it's had a rough year but by more than 40%, it's down and one analyst says there's more pain ahead, at least in the short term (mom allen) verizon just gave us all a brand new iphone 13. (dad allen) we've been customers for years. (dad brown) i thought new phones were for new customers? we got iphone 13s, too. switched to verizon two minutes ago. (mom brown) ours were busted and we still got a shiny new one.

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well anymore back to "exchange. the dow and s&p are about at session highs. the s&p about flat nasdaq not at session highs. that's down about three quarters off a percent. meanwhile, netflix moving higher after wedbush out performed from neutral and saying investor confidence is going to be restored and carv a, na issued a new operating plan to rapidly reduce expenses it's down 80% year to date and eli lilly, following fda approval of the type 2 diboaties treatment. out performing the bottom markets this year. up 12% let's now get to tyler matheson for a cnbc news update thank you very much.

and here is your cnbc news update at this hour. the suspect in this wekd's california church shooting has been charged with one count of murder and five counts of attempted murder he's being held on $1 million bail they don't yet know of any motive for the shooting that occurred at a church in laguna woods, california. police have now released the identities of the ten people who died in a mass shooting in a buffalo, new york supermarket on saturday three others were injured. majority of the victims were black and officials are investigating it as a possible hate crime they say the suspect, who has pleaded not guilty planned to continue his rampage nearby if he has not been apprehended. more on this outbreak of violence on "the news with shepherd smith" live from buffalo 7:00 p.m. eastern time tonight. and mcdonald's will exit the

russian mark after more than 30 years. it's begun the process of selling all 850 restaurant locations in the country the move in direct response to russia's invasion of ukraine they said their continued presence is no longer consistent with company values. and strong coms expected for wall smart's sam's club. they've missed only once in the past five years sdwhz options market in take two interactive is implying a nearly 10% move after today was result what to watch and how to trade those names up next in earnings exchange and during may,y with are celebrating asian american and pacific islander heritage. here is tom lee. >> i grew up in michigan my parents immigrated to the u.s. in the '60s my father was a for and my mother was a business owner.

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welcome back to "the exchange." time for earnings exchange where we give you the action, the story and the trade on three key reports. let's start with walmart shares have climbed 10%. one of only a handful of public companies that report more than 100 billion in revenue per quarter. courtney reagan has the story on walmart and chief market strategist courtney, what's the story on walmart? it's about flat in two years but that's actually good news in this market. it's doubled in five >> absolutely. and obviously, walmart sells a wide variety of things more than two-thirds of what it sells or probably more than half more appropriately is grocery. that is a repeat trip driver

it's been growing, particularly with the innovations they've made with online offerings for grocery. it's expect tad be a relative out performer when it comes to the results we're going to see in the first quarter u.s. comparable sales. expected to grow about 2.5%. sam's club though, those are expected to be much higher, up nearly 6%. sam sung's had a strong run but you can also get discounts on gasoline, which, in a inflationary environment is attractive to many consumers i think we're going to want to watch for patterns consoumers filling up their tanks, with also going inside, taking advantage of bulk pricing on food and filling up their trunks in that one trip. i think general merchandise could see a hit. those are typically higher margin prices. but if discretionary spending is reigned in, you should see it there. and particularly online because

they've been wanting to grethe high margin products online with apparel and home to help up the margin, lower the cost of operating online and did walmart pick up any of the online sales share that may have been left on the table from ebay,etsy this past quarter when the results were fairly disappointing? and if anyone can offer nice prasing power in an inflationary environment it's walmart even though they are seeing conversion down and pricing higher >> interesting matt, especially given the indigestion amazon's been having in the staffing up labor wise and logistics effort does walmart look good because it already had a network and physical locations it doesn't have the same problems >> well, it looks good to a certain degree and they've made such -- they've

done a great job developing theron line business overb the last several years it really has to be a core holding in anybody's portfolio and on the positive side of things is inflation should be something that helps them. if it hurts the margins, should hurt the market share. and people of a cert issen level of income look to save money going to walmart may help them increase their market share. i mean, this is going to be a very important week for the retailers. especially the bulls are really holding on saying hey, listen, if we start to see from walmart and others that they're starting to pull on their horns, then maybe the second half won't be as strong as people are saying it's going to be really important to the entire stock market >> and speaking of others, back to you on this

let's talk about home depot. shares are down 30% this yer right now near the 52-week low analysts are going to look for strength in the diy consumer segment, as well as insight inat the home improvement trend as rates sore what can we expect from guidance from home depot and where are the points of sensitivity for them whether it's inflation, mortgage rates, people not being as willing to borrow fwens their homes to do improvements >> there's a lot going on with home depot's numbers we may see a bit of a miss when it comes to sales. we have really bad seasonal weather. most people are expecting a bit of a disappointment. plus we have higher inventory levels and potentially lower demand when it comes to the forecast

lacking forward, home depot is talking about home affordability, what it means when they look lat the factor sdwhz big concern is the rising interest rates piper sandler lacks over the last 30 years, when they saw interest rates rise more than 100 basis points, they did see that retail sales slowed by 4 to 5% on average. and i think that could be a potential problem for home improvement retailers. but remember they have an outicized business to the pro cust canmers they're not seeing those survey results tick down but maybe it will be a wait and see for the company when it comes to guidance because we believe the spring quarter was not nearly as strong as it could have been >> given the pipeline that's existed over time for the home improvement projects, what she was saying about professionals being part of home depot's base. how do you feel about that compared to walmart? >> it's kind of funny.

i mean, the stock is down 30%. and it's becoming more reasonable at 18 times earnings. but it's still not really cheap. and we got a lumber down pretty big today. there's a high correlation between lurm lumber and a lot of the home builders. they're worried about what the high mortgage rates, which i am worried about. they're worried about we're going to have a repeat i think it's important to look at what happened in the 1970s. unlike 15 years ago, they're not putting 5% down to flip it, they're buying it to live in the home hard assets did very well, even mortgage rates were well in to the double digits. i fwguess i'm not as concerned a lot of people are.

i do think this is going to be a surprise to people that it's if wing to bottom earlier than a lot of other names, groups, and when the bounce is back, it's going to surprise people well. caut cautiouses but i'm more upbeat on this particular stock and the group overall. >> i wonder how affordability plays into that as well. from home improvement to entertainment, take two interactive down 40% this year as it prepares to complete the zinga acquisition. steve has the story on take two. steve, stable base of big games, even arizona they attempt to buy zinga buying the mobile games. >> what we saw last week with some of the game earnings, especially roblox and ea is both companies in the top and butm

line, the stock soared and on comments that the pandemic bom may be over but our comps are if wing to start lacking better we're growing hethally andy with want to see if take two is going to have similar commentary about the growth,b whether they lap them isselselves with the crazy pandemic stocks. and of course, zinga is expect tad close later this summer. that is such a huge part of take two strategy going forward they think in the coming fiscal year, that started this quarter, they're if they're going to be able to have 50% come from that so, anything about zinga is going to be something to pay attention to >> take two is trading about where it was at the beginning of 2018, even while microsoft is looking to take out a big video game maker

is that a sign of value here or should we pay more attention to what's happening with the particular earnings numbers? >> well, on the value side, stock's trading at 22 times earnings and 3.7 times sales and those sound like pretty high numbers. but for this stock in particular, they're pretty reasonable look at its history. so, that's a good thing. and steve talked about this moving to mobile talk to my dids about it they said this is a great move for the company. they're big users there. so, that's very positive the other thing i note the stock down 50% and down a lot. and you look on a technical basis. it's incredibly over sold, at least at the lows of last weak but still very over sold they only have to report anything in line and not just their earnings but guidance the guidance is key. as long as they don't disappoint, this stock, i can

see has tremends upside pausability. and it doesn't mean it's if we tag bounce because if they do report negative ones, it was over sold. they reported poor earnings and the stock got clobbered. i think there's upside potential here, especially on a short-term basis. >> that's a word we're nart hearing too much in a positive context in this market matt, thank you. steve covac, thank you as we well coming up, on "the exchange." jet blue making a hostile vi was iritew

fsd pharma is developing new treatments for neuro and inflammatory disorders. in a breakthrough discovery, fsd pharma recently demonstrated positive effects with their drug in treating ms in pre-clinical mouse models. fsd pharma (all): all hail, caesar! pssst julius! you should really check in with your team on ringcentral. oh hi caesar. we were just talking about you. yeah, you should probably get out of here. ♪ ringcentral ♪ welcome back the battle for spirit airlines heating up as jet blue trying to

beat out frontier airlines why does jetblue want spirit so bad? >> well, it's the key to its growth in the future, john and they believe their offers, we say offers because they twice have gone to the spirit board. they don't believe they've been fully heard. they're saying you know what we're going to illustrate to the shareholders a tender offer of $30 a share. and as you take a look at shares of of jetblue and spirit, with it's been positive for spirit, not so much for jetblue and they're encourage canning investors to vote no when it comes up june 10th i spoke to the ceo of jet blue earlier. he said we believe we have a superior bid and he says $30 a share, lack at that it's a premium a substantial premium. turned out tabe 60% where spirit shares are trading right now

the deal is fully fine angsed and we see a path to $33 a share, contingent on spirit's board talking with them. the biggest complaint about why they don't think the deal would work, they think a higher cost airline, buying a lower cost airline would not get approval in washington d.c. robin says that's hogwash. in fact, hawaii he says they have hidden behind the regulatory approval argument as a smoke screen what happens next? spirit's bid has a couple of things happening first of all jetblue's shareholders meeting on the frontier deal is meeting on the 10th that's the merger. and i'm sure spirit's board is going back to their large investors and saying this is why we don't think you should go

forward and say yeah, we're doing the tender offer and 30th, jetblue tender offer expires. one other thing. w we're foe tag hear from ceo of spirit in the next hour. he made it claer he believes this may not be about jetblue combining with spirit. he believes this may be about preventing spearirit and fronti getting together >> forgive me if i'm wrong spirit doesn't have the absolute best reputation in customer service overall. >> they've struggled at times. >> fair to say and normally if a company's got mna going on, a higher bid seen as a good thing. it's not as if jetblue is united or delta, like a huge airline out there. why not negotiate something with a huge break up fee and see what the best price is?

>> a bankruptcy of 200 million jetblue put in the latest offer. the feeling from spirit and others in the company, the feeling is doesn't matter how much you might modify the deal between spirit and jetblue, they honestly believe the doj is not going to approve it. so, why go down that path? the only teal that will get approved is between frontier and spirit, two low-cost carriers coming toofrgt together >> maybe they have more faith in the strength of the doj than microsoft does because it's cert ly trying to take out some things as well thank you for the insights can't wait for the interview with spirit coming up. and another rough day for the cloud stocks cloudstrike, dai dog, all lower. dare i ask is it time to buy the

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♪ ♪ ♪ a rough day for the cloud stocks data dog, ticker ddog, and the pain is being felt across the entire sector. frank holland takes a look at where they could be headed next. >> a very big day for cloud stocks after its best day ever on friday. literally its best day ever following the ten-year yield following what appears to be a resistance level a 3.2% on monday and selling below 3%. it is a rally of all cloud names on friday and that's extended today to some of the hardest-hit names and looking at stocks like a gora up 2%, and also

riskifishgs ied. the big winner today is infusion 60% off its 52-week high and not clear why it's rallying, but certainly something to look at analysts say if we did see a resistance level in the ten-year yield and a plateau. they could rally take a look at the relationship between the ten-year and the etf and pretty clear the inverse relationship right here when the yield is lower you'll see it's right over here. the-year-old goes up you'll see right here and the wclv continues to fall and the relationship between the yield and the high growth stocks, you can see continues to be inverse. valuations have been a big story for these stocks some of them with very elevated valuations if you look at price-to-earnings ratio and leading the p-e firm for cloud stocks and this is a slightly different metric and they use ford revenue multiple and it's

16 1/2 times the median for cloud stocks over the last week, the stocks that fall under that metric far outperforming the market and the cloud etf and we're seeing the stocks including amplitude, digital ocean, all up double digits for the past week jon? >> thank you my next guest says there's still short term pain ahead with long term aspects let's bring in jeffrey senior technology analyst brent, i'm not so sure about just the whole term cloud anymore because, i mean, these are enterprise software companies moist of them, but intuit's base isn't even in the enterprise some of them are, you know, infrastructure leaning and some of them are applications leaning and what's really happening in this group and where do you see the most potential >> yeah. i mean, i think we're still transitioning to the public cloud, jon 20% of workloads are in the

public cloud and we still have a long way to go i think many of these companies have described themselves as cloud stocks when they're really disguised as true enterprise names to your point. i thinkoverall the software industry is under massive duress we've seen multiples contract from a high teens to mid-single digit multiples on forward revenue and in past recessions we've seen multiples go as low as three times so we still have a long way to go and if you look at companies like snowflake, cloud flair and data dog they still have multiples that can still compress further we are tactically cautious because we think ultimately if we go into recession all of these companies have to lower numbers inevitably and that can happen in the back half of the year and most investors are waiting to buy these stocks until the fall or early next year to understand the shape of the curve of what happens with the goal or macro picture.

right now, friday's action is hedge fund covering of shorts. there's not a long only demand we're positive over time, just short term it's hard to be super bullish. >> let me ask you about a couple of names i know you're watching. i've spoken with both ceos in some depth over the last couple of weeks both have market caps around 5, 6 billion and the type of stock that will be overlooked in this market and it is down 5% today one focused in construction in the cloud there and another focused in productivity software which is an area, a lot of people believe microsoft has solved a knit, how do you evaluate that type of market >> true core is a phenomenally run company, and their management team and their short term position. the interest rate hangover on construction, so our buildings

will get built and are they going to get stalled because rates are higher we think construction starts in what's happening will far exceed the weight of the interest rate issues so fundamentally they're in a great shape smart sheet has been a real disappointing story. they've been, you know, good house in a bad neighborhood with a sauna, and smart sheet and monday.com bringing their valuation down they're executing very well valuations, very reasonable and they help companies collaborate on everything that they do from concerts all of the way through, you know, just basic business processes. we really like the team and think again, a great long term story that is positioned well when the valuations come off >> we've got, like, 20 seconds left, but brebrent, elon musk j

tweeted a poop emoji >> i think he wants it, i don't think he puts that down and he just wants a lower price that's all it is. >> we'll see if tesla investors want it because more and more that's an issue and that stock is trading in the 700s brent thill, thank you and that's going to do it for "the exchange. "power lunch" starts right now ♪ ♪ ♪ jon, thank you very much welcome back to "power lunch" on a monday i'm tyler matheson and here's what's ahead on a busy hour. the market is looking to the fed to face one of the biggest facing the economy most have it wrong we'll get his take on what has to happen to get it right and where the solutions really are plus, the ceo of spirit airlines he's responding and maybe in not such a good way to jet blue's now hostile bi