flavors and ingredients that you don't usually find in fast casual establishments, and while white truffles are expensive, the items are not all such, they have some starting prices under $10. >> that was my next question after we've talked about stretch consumers and all the rest. >> all right, folks, there you go it. i'm having the prawns tonight. >> i'm coming over. >> "closing bell" starts right now. stocks starting the day lower but firming out a bill throughout the session the dow erasing most of a triple digit loss as investors weigh more earnings and a speech tomorrow from fed chair powell this is the make or break hour for your money welcome to "closing bell," i'm mike santoli in for sara eisen the s&p 500 has been sitting around this half percent decline most of the day. you see the russell 2000 has got worst of it. down 1.4%. that has been one of the big outperformers going into today the s&p about 2% breauelow the s

of last week after that strong friday jobs report here's a look at the biggest decliners today in the nasdaq 100. activision blizzard on the downside, big concerns about the gaming industry, micron, intel, chips giving back some of the recent gains as well as sirius xm and paypal holdings on the bottom of the nasdaq 100 coming up on today's show, we'll talk to the ceo of c3 ai, which is up triple digits amid the global buzz around artificial intelligence and chatgpt as i mentioned, as 2% below the hays of this rally, just below the 4,200 mark last week did get some hesitation after that hot jobs number, yields on the rise, and people liking the general formation here of some kind of a base, the fact that we got really good readings

the fact that we did break that long down trend from the january 2022 highs has some people thinking that this could be a little more consequential, not that we go up and away from here the market did get stretched in the very short-term. now it's all about the magnitude of a potential pullback, where we settle out after that take a look at pure growth versus pure value. this is the stocks within the s&p 500 that most qualify as deep value or the fastest growth, and this is a three-year chart. shows you value finally nosing ahead of growth here over this long span from right before the pandemic interestingly, growth now has a ton of energy in it. it's not purely the old equation of tech versus nontech, but right now a lot of the cyclical stocks in the value index are performing really well brings up bigger questions about what the leadership profile this market might become over the next cycle wherever that is. the nasdaq as we mentioned, lagging today. it's on pace to close in the red for a second day in a row.

it is coming off a five-week winning streak that's its longest since november of 2021, and that streak has the index up 13% year-to-date one of our next guests says tech could be facing a lost decade. joining us now bernstein senior analyst tony sack na gee i'll start with you, tony, just on the big picture front here. now, obviously tech was really dominated the leadership of this market on the upside clearly got hurt worse than the s&p 500 last year. what are you projecting in terms of where that leaves the tech industry in the way of valuations i know we know the example of what happened after the year 2000 it was a long period before tech resumed a leadership position. >> good afternoon, mike, and thanks for having me on. so when we look at tech valuations today tech is trading at a 40% premium to the market. its historical average is at 25%

premium. tech valuations relative to history are elevated, and when we look at growth expectations for tech, actually the premium growth for tech is actually below its historical averages. you have tech being a bit more expensive, yet forecasting lower growth we do worry about that, you're right. tech imploded following the bubble from 2000 to 2003, it underperformed significantly if we start looking in 2004, valuations for tech were the same level they are today relative to the market, and tech still underperformed in seven out of the next ten years and underperformed throughout the period, and so that clearly is the worry, and it was because the leadership stocks at that time ultimately weren't able to keep growing at the same rate, and i think that is the fundamental question for tech over the next, you know, five, seven years. >> yeah, i mean, certainly you can just look at microsoft in 2000 at 60 times earnings,

eventually went down to ten, earnings kept growing but not as fast certainly came back. maybe not all the way. something to keep in mind. david, i wonder how you go about looking stock by stock with this in mind. in other words, maybe we can't count on the predominant trade in the market being money flowing into technology platforms. what's key to you right now after this decline we saw last year >> well, we fish in different ponds than what tony does. we only own 20 stocks and might tend to keep them for a long time your point on microsoft and some of the starting valuations, you know, that on the eve of the tech bubble really speak to a significant part of the underperformance, but on the stock price stock basis, we're finding what we believe are terrific businesses at reasonable valuations, and we

l like to own what we consider to be the most dominant in their various sub sectors in tech or any other industry, and again, we tend to invest in them and hold them for a long, long time. we're not having a hard time putting money to work in this environment. >> i was going to just ask that in terms of what has surfaced based on the way valuations have gotten compressed and gotten concerned in some of these businesses i know meta was one of these picks. even after this rebound, does it still look attractive? >> yeah, it does the stitches and scars from late last year are starting to heal, so i'm feeling a little bit better about that. all kidding aside, i'm thinking about real quick on meta if you are rip vanwinkle and you went to sleep last august and september and woke up today, you would realize that stock is up a little bit more than what it was then what's interesting is after that

dreadful third quarter report in october where submits were just dec decimated, what's interesting is after this last report, estimates are almost back to where they were in that august and september period and more importantly, the estimates for third quarter 2023 and fourth quarter 2023 are almost exactly where they were and so the stock outside of all of that conference call and mark zuckerberg, we're going to spend like drunken sailors and the stock collapsed below 100, probably should have never have gone down there, and we've had this remarkable run back from valuations that were probably, i mean, it was like a coal mine that was going to go out of business in five or six years, but the fundamentals there, again, we like the improvement that we're seeing on meta. it will be interesting to see. here's the uber bullet point on

meta in this hole with at&t, their app track ask transparency, they recently released their latest version of that it's some fancy name like skdn network 4.0, but within that, it's allowing more signals to come out it's allowing more data to follow, and maybe we'll look back in a year or two and realize, maybe that was the best thing for meta because of the emphasis on machine learning, ai, et cetera, and so, yeah, estimates -- the next quarter's not going to be a positive one it's going to be negative. the second quarter is probably slightly negative, maybe slightly positive, and then from then through the rest of 2024, mike, it's nothing but accel acceleration the stock is probably flat it's had a great run we're not going to gain it >> yeah. tony skp tony, and by the way, david, i

know you're a long-time apple holder i want to get to your bigger picture as it applies to something like apple i can imagine you might get some response to your lost decade idea by saying these businesses are either more stable, more predictable, even if they're not growing as fast, something like apple just has this massive kind of entrenched position, and the market seems to want to for now pay up for something like that >> yeah, look, i think that's the aoperative question if we look at the last eight years where tech prior to 2022 had this phenomenal rally, 73% of the outperformance were driven by the five faang stocks and 29% was driven by apple alone. that's a really stunning number. so clearly in assembling a portfolio going forward, having opinions on these faang stocks is really critical, and i hear david on his bulk case for meta, i think the question is collectively can these five

stocks pow the market in the same way they have over the last seven or eight years history would say that's more challenging generally because if you look at growth for the next couple of years, particularly top-line growth, it's much, much slower between 18 and 21 it was 15% for the faangs for '22 to '24 it's only 5%. ultimately, the market values tack on growth rates, and so the really big question in our meends minds for the next faive or ten years is are you going to have similar kind of growth from today's tech leaders, or new tech leaders to power the next leg of a tech rally. that's the operative question. >> right, yes, if something new comes along or something starts to accelerate, we'll have to see if that can change the story at all. really appreciate it we've got to leave it there. we do have breaking news to get to thanks very much. we have a news alert on president biden's economic

agenda eamon javers has the details. >> we're getting a look at what the president's going to say in the state of the union regarding the economy. a couple of proposals the white house just released in a news release including one for a surcharge on corporate stock buybacks the white house saying in the state of the union, the president's going to call for quadrupling the tax on corporate stock buybacks the white house making the argument for this new tax by saying that stock buybacks enable corporations to funnel tax advantaged payouts to wealthy and foreign investors instead of paying dividends that shareholders are required to pay taxes on in addition they're arguing here ceos are compensated mostly in stock use buybacks to enrich themselves that's one proposal from the president you can expect to hear tomorrow night another one is the idea of a billionaire minimum tax, the white house saying that the president is a capitalist and believes that anyone should be able to become a billionaire or millionaire. he also believes it's wrong for america to have a tax code,

paying a lower tax rate than working families he's going to call for this billionaire minimum tax as well tomorrow night a peek about some of the things we're going to hear from the president from washington on tuesday. >> i guess that's part of the tactic there we'll see how the rest of it comes out. appreciate it. after the break, the buzz surrounding chatgpt has investors chasing names in the artificial intelligence space and the company with the ticker symbol ai is no exception. we'll talk to the ceo of c3 ai about this year's rally and how his company fits into the growing landscape. you're watching "closing bell" on cnbc. you'll always remember buying your first car. but the things that last a lifetime like happiness, love and confidence... you can't buy those. but you can invest in them. at t. rowe price, our strategic investing approach

can help you build the future you imagine. lomita feed is 101 years old. when covid hit, we had some challenges. i heard about the payroll tax refund that allowed us to keep the people that have been here taking care of us. learn more at getrefunds.com. we planned well for retirement, but i wish we had more cash. you think those two have any idea? that they can sell their life insurance policy for cash? so they're basically sitting on a goldmine? i don't think they have a clue. that's crazy! well, not everyone knows coventry's helped thousands of people sell their policies for cash. even term policies. i can't believe they're just sitting up there! sitting on all this cash. if you own a life insurance policy of $100,000 or more, you can sell all or part of it to coventry. even a term policy. for cash, or a combination of cash and coverage, with no future premiums. someone needs to tell them, that they're sitting on a goldmine, and you have no idea! hey, guys!

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the big tech ai wars are heating up alphabet just announcing its chat gpt rival barred will begin testing ahead of its public cay bu i debut in the coming weeks, and microsoft will be holding an event tomorrow it is rumored it will focus on its chatgpt integration into bing c 3ai, the stock with the ticker symbol ai surging more than 130% year-to-date the enterprise software company announcing plans to release a new tool for businesses that incorporates open ai's chat gpt type functions joining me now in a first on cnbc, tom siebel tom, good to see you >> hi, mike.

>> so we should draw some lines here between what c3 ai is and does and maybe isn't naturally the greater buzz and attention around ai has people excited about all things ai. you have enterprise customers. you make their network smarter, make them run more efficiently, and apply artificial intelligence to some of their functions. how is that kind of seizing upon some of these other innovations that are about search and chat and language swren rgeneration d things like that >> great question, and thank you for asking we spent the better part of the last 13 years and about a ball and a half dollars building software stat called the c3 a i platform that we apply in some of the world's largest organizations, united states air force, candmt of defense, shell, koch industries to build enterprise ai applications

this is based upon a m model-driven architecture. we've been tracking what's going on in open ai very closely in recent years, and we're uniquely positioned to take advantage of that, not so much for chatgpt, but what we are doing with the c3 aiai, which is what all the buzz is about is combining the c3 ai platform, basically the google search user experience model, natural language processing, generalttive ai and reinforcement learning to fundamentally change the human interaction model as it relates to these enterprise applications be they crm, erp, manufacturing, demand forecasting, supply chain management, fraud what have you. so it's a -- we're kind of uniquely positioned to take advantage of this great explosion that we're seeing in generative ai for a very, very

prac practical real world enterprise application experience >> got it. so it certainly seems, though that it's more an enhancement or a feature of, you know, an input to what you're still selling as these very large corporate subscription based systems, right? >> whether we're dealing with the chairman of the joint chiefs of staff or a corporal on the flight line, the ceo of bank of america or a teller or a bank of america customer, they're all using the same human computer interaction model, and it's a natural face using something that looks like the google search engine. generative transformers have basically crawled the entire web of the enterprise, be it dod, united states air force or bank of america, and making these answers instantly available, whether it be the account holder

or the branch manager or whether it be the ceo of bank of america. and so it's a fundamentally new -- it is a breakthrough in the user resume computer interaction model for enterprise applications, both for consumers and for enterprise users. >> is there any risk, tom, that because every company, the huge ones included are now making such a priority of developing ai capabilities or applying it in different ways that, in fact, you have lots of new competitors and people are going to be jockeying for exactly the area that you've been a working on for over a decade? >> well, we were kind of first to file in patenting this idea i think that as it relates to what we see the innovation that we're going to see in the next five years in generative ai, tgs the first half of the first inning and the first person's at bat, and we're going to see billions invested by microsoft,

google, ibm and others to advance these technologies and as these technologies advance, we're going to be able to immediately take advantage of the work that they're doing. so this is entirely compatible with our model driven architecture, and this is all, you know -- this works very well for the c3 ai strategy >> if the long-term, you know, opportunity is still there, the demand is going to be there for a better way of doing all these things i wonder what the environment looks like right now in terms of trying to close big corporate deals right now, obviously there's been some choppiness in terms of revenue growth recently because it is such a big ticket, it's a commitment by these companies. how do things look from here in terms of the overall environment? >> well, i think there has been choppiness in technology and markets, and there certainly has been a lot of choppiness in

equity markets we fundamentally changed our pricing model some months ago to a consumption based pricing model. basically people adopt their enterprise applications. the price is $0.55 it isn't a big ticket acquisition. it makes it easy for small organizations, medium organizations and the largest companies in the world to adopt our technology this is working very well for us. >> does it make sense to you, i mean, obviously you want to see your stock do well, you want to actually have people recognize what you're working on and whether it's an attractive area. you guys were obviously caught up after your ipo and some of the real excitement about these long-term trends, the stock was at 170 now we're back to where you were a year ago does it make sense for you to have all this excitement in two weeks because these people are really hopped up on ai concepts. >> the complexities and vagaries

of the equity markets are a little bit beyond me, and you know, it certainly has its mood swings that are a little bit -- again, this is beyond my ability to really deal with our business, okay, we're a rapidly growing enterprise application software company, and our objective is to establish and maintain a market leadership position in enterprise ai. this looks like a $600 billion addressable market opportunity i think there's some probability that we will be the leader, if not us, who, and if not us, we will certainly be a large successful company in the space and, so i believe our future looks very bright. tom, appreciate you taking the time today good to speak with you >> thank you, mike >> c3 ai was once a cnbc disruptor 50 company we are now accepting nominations for the 11th annual list of

innovators if you're with a private backed venture company or no one, scan the qr code on your screen or go to cnbc.com/disrupters to learn more. two drugs made by novo nor disk are among the fastest growing in history we'll hear from the ceo about those treatments and the buzz around a side effect of o'we sem pick we have the ten-year treasury yield in the top spot followed th tesla, amazon, apple and e s&p 500. we'll be right back.

we planned well for retirement, but i wish we had more cash. you think those two have any idea? that they can sell their life insurance policy for cash? so they're basically sitting on a goldmine? i don't think they have a clue. that's crazy! well, not everyone knows coventry's helped thousands of people sell their policies for cash. even term policies. i can't believe they're just sitting up there! sitting on all this cash. if you own a life insurance policy of $100,000 or more, you can sell all or part of it to coventry. even a term policy. for cash, or a combination of cash and coverage, with no future premiums. someone needs to tell them, that they're sitting on a goldmine, and you have no idea! hey, guys! you're sitting on a goldmine! come on, guys! do you hear that? i don't hear anything anymore. find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or

visit coventrydirect.com. oze welcome back shares of novo nordisk have been on a tear the last few months as two of the company's newer drugs show rapid growth. meg tirrell, bring us up to speed. >> these are two drugs that are

in the same class. ozempic is approved for type 2 diabetes, govy is approved for obesity for people above a certain bmi you can see the prescription growth in terms of the sales growth up 77% last year compared with the year before for ozempic. more than 300% for we govy celebrities are starting to talk about these drugs. andy cohen from bravo saying everyone's showing up taking oze ozempic. elon musk saying he takes wegovy for weight loss. the side effects from them include something people are calling ozempic face, which essentially is rapid weight loss in the face that makes you look gaunt because the fat has left the face we did ask novo's ceo about this he said that is not -- didn't actually talk about ozempic face itself but i asked him broadly about the safety of these

medicine z as they are used so broadly. >> we're always concerned about safety of our medicines and that's why we really focus on promoting it the right way getting to physicians and describing how our products should be used and that's what we focused on, and i feel comfortable about what we're seeing there >> really emphasizing that they are promoting these drugs for their medical uses eli lilly, of course, also in this race. it has a type 2 diabetes drug. it's awaiting approval in o' obesity itself this market could be $80 billion for the on label uses mostly for these medicines. >> amazing those who need it and those who want it, very eager to try it, meg, thank you very much up next, we will discuss how the fallout from the chinese spy balloon controversy could impact u.s./china relations and your investments.

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i'm just visiting. u.s. bank. ranked #1 in customer satisfaction with retail banking in california by j.d. power. flight in the u.s. came to an end over the weekend, but the fallout may just be beginning. the balloon's presence prompted secretary of state antony blinken to indefinitely postpone a beijing visit and transparency demands are coming from

lawmakers on continue hill joining us now is anna ashton to discuss some of the potential implications, anna, that obviously the postponement of the secretary of state's visit seems to set back a warming of relations that people were hoping for, or at least setting the scene for an improvement where do you think that's going to ultimately leave us with regard to china? >> well, it certainly does, mike, show that the relationship is in a really challenging place when something like this can derail long-planned talks that have been in the works since basically november. those talks, there were no deliverables expected, but that's all the more reason why they should have been able to move forward and better conditions and it's also all the more reason why they were important because there are other inflection points coming up in the next few months that could also strain the relationship and make things

more volatile, and having that kind of direct communication between senior leaders is necessary to ensure that doesn't happen. >> i mean, i suppose on one level and it's been remarked a lot here that everyone knows that mutual spying goes on there are various ways this is done, is it just the fact that it became such a public fixation in this country and maybe some embarrass on the part of the chinese authorities that it means that governments have to respond in a way that might be a little bit more hostile than otherwise? >> well, i think that, you know, the china relationship is politically so heated in the united states right now on capitol hill, if this had happened with another nation, i'm not sure that we necessarily would have seen this kind of response, but this happened with china and furthermore, you know, while we have heard that there are

indications of other balloons having entered u.s. -- or been over the u.s. in the last few years, we may not have known that at the time, and this balloon was roughly around 60,000 feet in altitude, which is the upper limit of what the faa considers u.s. air space, so this balloon was technically different because it was actually in u.s. air space >> right, i do suppose there's just not that much appetite for looking past these sorts of things based on how the relationship has been going. on a practical level are we looking at things like further sanctions or maybe just an inability to come to some kind of common understanding among issues like russia where chinese aid to russia becoming another big issue. >> it's good that you mentioned russia you know, i don't think that this particular incident, the balloon incident is something that the united states necessarily wants to continue to

escalate there are people on capitol hill that probably do, but the biden administration probably would prefer that this blow over however, there are plenty of other issues in the relationship that could be cause for more significant measures by the united states, and you know, we've seen that play out already in recent weeks. we saw sanctions on a chinese company that was supposedly at least indirectly doing business with the wagner group, and thereby violating u.s. sanctions. there are lots of reports in "the wall street journal" and elsewhere over the weekend that there may be more comprehensive violations of u.s. sanctions in support of russia's efforts. the data doesn't clearly indicate that to me from what i've seen so far, but that certainly ould, i think requir a strong reaction from the biden administration >> all right, we will be alert for any of that, anna, thanks so much appreciate you joining us. anna ashton. >> thank you

tyson foods is one of the biggest losers in the s&p 500 after a big earnings miss. coming up, a top analyst on whether this stock will keep getting grilled. and during february, we're celebrating black heritage through the stories of some of our cnbc teammates >> our culture's been a catalyst for everything earn your leisure has done that's why we've been so super intentional from the way we dress, to the way we talk to the way our message is delivered. >> our success has been ext extremely humble we have gained worldwide support. we stand on the shoulders of our forefathers and our goal is to leave a legacy for generations to come.

let's check out today's stealth mover, celsius holdings, and it is really heating up. wedbush generating a lot of buzz about this stock, upgrading the energy drink maker from outperform to neutral and hiking its price target to 115 from 95. that is roughly a 15% upside from where it's trading right now. the analyst there citing accelerating market share gains and valuation. the stock has cooled off by 9% since mid-january coming into today. actually, at this level. up next, we'll be joined by an analyst who says today's big selloff in shares of rh is a buying opportunity for the retail stock that story, plus tyson foods tanking, and what to expect from pinterest's earnings when we take you inside the market zone.

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with powerful, easy-to-use tools power e*trade makes complex trading easier react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity we are mow in the "closing bell" market zone, citi's scott kroner is here to break down these crucial moments of the trading day. and anthony ta couple baa, and julia boorstin on pinterest. let's start on the broad markets. the s&p 500 down about 7/10 of 1% right now, still nicely up for the year-to-date over five weeks. scott, how are you treating this

rebound? i mean, obviously there's been kind of some forced repositioning. people a little too defensive coming in. the market's ability to perform when earnings have been a little bit messy and we might even be not as close to the end of the fed tightening cycle as we thought we were about four days ago. >> right, i guess our perspective on this is if you look at the move year-to-date, in our view it's mostly a multiple expansion move essentially reversing some of the compression we felt last year around the fed narrative. to put some numbers around this as of a couple of days ago, we had mentioned that the valuation on the s&p 500 had increased by roughly 10% from the start of the year, even though bottom of earnings expectations have fallen by 3% so again, reflect reaction to a narrative around a less hawkish fed that's translating into a multiple expansion around those areas of the market that are most negatively impacted the last year of tech, consumer

discretionary, communication services >> certainly all that is going on in a big way. we also have a bit of a reflation of some of the more speculative parts of the market. i wonder what you make of the fact that the move in the equity markets is pretty global there's been some cyclical leadership you have some things like materials and some industrials doing well, and is there a macro message in that or is it more noise? can we take any comfort from that and the fact that the credit markets remain pretty firm as well >> i would say not yet, and quite honestly, the way we're looking at it here is if you look at, again, the year-to-date move, there are ten stocks that account for roughly 22% of the s&p 500 that can be attributed for half of the index move, okay so yes, we're seeing some expansion down cap into small cap as an example so far this year in our view, again, the bulk of what's being construed to the s&p move is a dynamic around a

megacap cohort that's snapping back off of last year. to be fair, i do think that with, you know, some increasing confidence that we're looking at peak inflation, that certainly begins to provide a little bit more comfort that there's a backstop in place, but we're still looking at an earnings picture that is far are from clear and far from setting up for a more significant fall through to the upside. >> what does that imply tactically, i suppose, in terms of what parts of the market look better or worse? i mean, would that need to stay relatively defensive and go to those areas where you have some confidence that earnings are going to come through? >> yeah, we're barbelling it, right? we went into this year overweight industrials and energy, which were controversial at the time. i still feel like that economic exposure makes sense versus what we're seeing on the earnings front. real estate is a quasi defensive sector that we also updated to overweight, again, here on the perspective that the rising rate

dynamic of last year's largely priced in, health care is an ongoing defensive call for us that we had in place all of last year we think it still makes a ton of sense. it is going to lose out in a more traditional economic sense of risk on rally for now we're pretty comfortable with this barbell approach between defensives and economic sensitives all right, scott, great to catch up with you. thank you very much. scott chroner from city. rh saying the finances in its first, second and third quarter reports from last year can no longer be relied upon the furniture retailer saying it expects 2022 revenue to fall by as much as 4.5%, 2023 i assume of its previous range. our next guest sees today's losses as a buying opportunity let's bring in anthony chikumba of luke capital. anthony, there was this

retirement, the filing had what looked like some pretty material adjustments to what had been stated earnings based on the treatment, i guess, of various accounting measuring, right? it was about debt repayment and things like that does that not give you a little bit of a pause about the quality of the earnings from here on out? >> it really doesn't let's be clear, management has some egg on their faces. at the end of the ta day, these statements do not affect revenue. they don't affect assets, liabilities, debt. they basically made a couple of accounting mistakes. it does not in any way, shape, or form affect the underlying fundamentals of this business which continue to be strong. >> the underlying fundamentals being strong it seems as if they've had a little bit of difficulty with the maybe pull forward of demand over the pandemic, and then a little bit of a hangover effect after that is it -- does it trade with housing related? what are the drivers of this business that you think are poised to be strong given the

fact that they did have some muted guidance >> well, you have to put that number in perspective, though. so in 2019, so that was the last full year before the pandemic, rh did $2.6 billion in sales at a 4% operating margin. they were tracked to have done a billion dollars more in revenue and a 22% operating margin let's not get it twisted, they're having a very, very strong year. clearly the sort of weakness in the high end housing market will hurt them, but i'm really looking at this as more of a long-term play >> and is it the area within retail, i know you also cover some of the discounters and dollar stores and things like that would this be a place to focus within retail at this point, or do you think that because of macro issues there are other areas that might be better positioned >> well, if you're talking about near-term, yeah, clearly i would go with more sort of defensive names, like for example, we really like dollar generaland

dollar tree. those are names that will definitely outperform fundamentally, and i think the stocks will outperform in a, you know, sort of more rocky macroeconomic environment. rh is more of a name we like long-term. don't take my word for it. berkshire hathaway is the second largest shareholder. they own 10% of the stock. the largest shareholder is the ceo, gary friedman who owns 14% of the stock. >> hathat is true not sure if we know it's warren within berkshire years and years ago they also owned pier one anthony, it's good to talk to you. thank you very much. >> thanks for having me. tyson foods sliding today after missing earnings estimates largely tied to a drop in beef prices and falling pork sales volumes. tyson's ceo blamed market dynamics and some operational inefficiencies for the hit to profit tyson also reduced its full-year operating margins. michael avery of piper sandler

joins me now he has a hold rating and a $65 price target on tyson. michael, it seems like we're caught in a tough spot, at least in the most recent period where there was some trade down in customers not really paying up in terms of pricing and then they're still saddled with some elevated costs is that going to persist what's the outlook from here now that the market seems to be kind of turning ton this story? >> touched on two key components of it, the consumer demand side and the cost of commodity piece. commodities have been tough because they still have elevated feed costs, but the pricing on chicken and beef is depressed. the u.s. domestic demand was -- as a soft owned beef when we downgraded about nine months ago, this was one of our key concerns, specifically in a way that isn't even fully played out. we were looking in part at the snap consumer, the food stamp recipients they have elevated benefits

level that end this month that they said they've been using to buy more food, they specifically said all meat, and within that they've been trading up. we see risk both to meat, to the meat category as this 14 or 15% of households loses 30 to 35 billion of extra stimulus funds over the course of this year and trading down as they switch to cheaper alternatives so presumably you don't think that's in current tyson earnings forecast because if the earnings are going to be met at this point, it starts to look as if there's some value there, i mean, trading ten times or so forward earnings >> it historically trades arnoud 11 it depends on what that eps number ends up being in the out year, and that's where we still have some questions. we think that there's definitely risk just from a general broad-based consumer under inflation pressure with savings drawdowns that we're seeing across the board, but especially

this low end consumer that we think has been driving a bit of a -- have some headwind, so we think it's a little too early to get constructive on this valuation for sure >> if it's a category issue, this pressure, what other stocks are in the cross hairs i mean, is it like a conagra, hormel >> it's a bit of an apples and oranges comparisons in some respects because some of those have more value-added products and many other categories that they participate in. you see a kraft heinz, a hormel, and some of these who have a lunch meat or different kinds of meat businesses but typically less of the commodity exposure and some of the things that are more impacting tyson directly. you also have hormel with something like -- for example, which if you're going to trade down is going to be a beneficiary of that. >> sure. good perspective miechael, appreciate the time today. >> thank you. pinterest shares are popping ahead of earnings after the bell

investors will be paying very close attention to whether pinterest will report revenue growth while rival social media companies meta and snap are experiencing either flat or shrinking sales. julia boorstin joins us to set up those numbers. >> what's so interesting here is that we just came off an earnings where meta's revenue declined less than anticipated it declined by just 4% from a year ago analysts had been expecting it to climb 6.5%. here we are going into pinterest earnings, and analysts are expecting it to grow revenue by 5%, not less of a decline, but actually increase revenue by 5% whereas they are also expecting the company to say that it's going to guide to about 7% revenue growth in the first quarter. so optimism here going into this earnings report. a lot of it comes down to the efforts of the relatively new ceo to really close the loop when it comes to getting c consumers to make purchases based on ads they've seen on the platform. >> i was going to ask that

it seems like it's a little more closer to transaction-based advertising that pinterest depends upon, presumably they're also somewhat more free of some of the other pressure points whether it's the apple privacy changes maybe or even the tiktok threat. >> well, look, there have been so many different challenges that pinterest has faced there was a huge amount of user growth during the early days of the pandemic, the first year of the pandemic but then there was a dramatic decline in users this is very unusual for social platforms to seeing a meaningful decline. there is an expectation that the company will add about 7 million monthly active users after adding 12 million in the prior quarter. i think you're right that this is a platform that doesn't compete that much with tiktok in terms of the usage, and there is this advantage of making more of their ads what they call direct response adss.

pinterest doesn't want to be a platform responsible for the transactions it doesn't not want to be a shopify, but it does want to make sure advertisers can see the immediate impact of their ads in driving actual purchases on their own platforms. >> that stock has been quietly improving since the middle of last year. thank you. as we get toward the close, the s&p 500 down just about 2/3 of 1%. in this area, about 4,100 for much of the day. the russell 2000 down 1.4% the smaller cap market definitely taking a little more of a hit it also had outperformed on the upside the declining versus advancing volume, pretty skewed to the downside payback from very strong numbers over the last couple of days semiconductors another outperformer for the year-to-date down 1.5% today so some of the froth being skimmed away on some of these stocks bed, bath and beyond, these meme stocks kind of halted because they got to upward limits. the volatility index did perk

up, it's up a point, 19.4. we do have that speech by fed chair jay powell midday tomorrow, a lot of folks on alert as to what that might mean treasury yields were up today as was the u.s. dollar index. all of that, the market may be rethinking exactly how much rate hiking remains on the books to be done this year. that's going to do it for "closing bell," over to jury trial overtime" with scott wapner all right, mike, thank you very much. welcome to "overtime." i'm scott wapner we're just getting started here at the new york stock exchange we have more earnings breaking any moment from pinterest, take-two and actvision so much on the lines and of course our reporters are standing by to give us the details. i'll also speak to fundstrat head technician mark newton, now he'll tell you where he thinks they can actually go from here we begin with our talk of the tape, whether it's