profitability and that's a key pet rick whether they can go into the s&p or not. >> i do. i gave you baba and baidu for the same reasons. >> we'll leave it there. that's a quick one that will do it on "halftime." "the exchange" starts now with ellie evans. thanks for watching. >> thanks, frank hi, everyone welcome to "the exchange." i'm kelly evans and here's what's ahead this half hour. our market guest is here to say don't get too caught up in the hype especially in some areas in particular and where he's finding opportunities right now. instead, he's got three names in particular plus one industry where a.i. has absolutely taken off is actually real estate and there's one name uniquely positioned at the intersection of these two fields and the ceo joins us ahead today with the stock up 20% in the

past two months. and we're half way through earnings season with some exciting names still on deck we have bellwethers in tech, industrials and the battleground consumer space all on deck for the morning and we'll tell you what to watch and how to position into those prints, but first, so glad he's here it would be weird if i was back and you were gone, don. >> we have missed you and we tried to hold down the fort while you were gone. >> big moves today, by the way. >> big moves, not so much, but they areat least thematically important, kelly, and i'll tell you why. if we take a look now at the overall picture of the markets and we have lost some momentum, but to be fair even at the highs of the session so far we were up fractionally and marginally to the upside overall we are now just marginally to the down side, just about flat and slightly negative for the dow industrials and off about 0.1% and 35,444. the s&p off 0.1% and the nasdaq composite off a similar amount

and just about teb points to it is down side, 14,306 that does not take away from what kelly was just saying it's been a pretty banner month for the markets overall. the month of july as of right now has seen every single sector in the s&p 500 to the upside led by these three key ones and kind of know what they are thematically speaking and energy because of rising fuel prices and energy prices overall. communications services think about all of those reports from the likes of meta which have been driving things to the upside there and then financials those bank earnings that kicked off the earnings season and they were generally positive, as well those three and the top-performing sectors and we'll see if that sticks around and every single sector to the upside and health care was the big laggard and only about 0.1% and the stocks to watch apple and amazon, we talked about them a lot and they both reported earnings later this week and amazon and apple over the course of the year to date period amazon's up 58%. apple about 51%.

apple is by the way, near its record highs right now amazon's still a decent amount below the pandemic and what's important here, if you look at these two stocks, they are going to drive a lot of the market narrative, kelly, why? because roughly, 11% of the entire s&p 500 is those two stocks alone and it's even more so, kelly. let's call it 17% when it comes to the overall nasdaq 100 so keep an eye on those names and amazon and apple >> it will be a big week, dom, thank you very much. it's now consensus that will have a soft landing if we have a landing at all is it consensus? let's ask steve liesman. he's got the details in the new cnbc "rapid update." what do the numbers say, steve >> first, i want to start off with a lesson in driving airplane or flying an airplane, you can't land, kelly if you don't slow down and strong consumer spending and income reports last week have economists sharply boosting their outlook for the third

quarter and no landing there, the economists are raising the opening forecast for the third quarter to a trend like 1.7% and that's up from a stalled speed of 0.3% from the june survey this would be the third quarter in a row at or around trend and it follows a pattern where we forecasted economic strength the slowdown has been pushed ahead again this time to the fourth quarter this year a warning, it's early in the quarter and there isn't much data and the forecast will be revised sharply as the data come in and the way it's calculated, consumers don't need to raise their spending in the rest of the quarter very much at all for spending to end up being healthy because june was so strong the forecasters in the survey are closer and they're more consistent when it comeses to their inflation outlook and dropping slowly to .29 for the first quarter of next year rell disposable income, now

above pre-pandemic levels so consumers should have the ability, kelly to continue spending despite, of course, some challenges ahead. >> that's where it was interesting to hear various comments especially from myra robbins and peter was highlighting that this morning, but he's talking about how different loan demand is you in than it was before, and it's not that strong, you know? you spin this out six months and we could have a bigger impact on the economy and you can sort of expect to see right now. >> you know, i think that's possible and certainly lending will be challenged by higher rates as well as banks, tightening credit standards and we have the senior loan officer survey at 2:00 we'll be looking at that and that will be an important factor here, but the pattern is kind of unmistakable, kelly, in that what's been happening here is that they've been underestimating the strength of the consumer and overestimating how much impact both higher interest rates and the fed and inflation are having on the

bottom line of real growth we'll see if that continues and maybe eventually they get it right with the first quarter and the first quarter of '24 now built in, but three-quarters are running at or around trend and what's interesting about that, we can have a discussion about one of these days, kelly on the philips curve, but we've had trend growth and inflation declining. now you explain that. >> i've seen a lot of people saying this is it and the idea that the strong labor market is necessarily inflationary and we should put that idea to bed. >> right right. >> it makes sense induituitivel and we saw it during covid and the demand this time around is more sustainable >> it could be, and that's why i like the idea of real disposable income and imagine your wages went up by a large amount or by a decent amount at 5% and inflation was higher and now inflation came down and you've held on to those wage gains so the real disposable and

we'll see. government spending, and as well as from the pan dem and being you do have the student loan payments starting up, and i think the thing here and it's important for investors, don't confuse something that was a drag on the economy with something that could crater the economy. i think the student loan discussion is something that will definitely drag and i don't think it brings the economy down to a recession >> you get enough drags and then at some point, we'll see steve, thank you very much for now. appreciate it and our steve liesman reporting. >> my next guest isn't bearish, but he concerned and investors aren't turning a good thing into a bad one for tech stocks here here is david bonsen at the bonsen group >> good to see you, kelly. >> apple, amazon, is that what you mean by be careful >> apple is trading at 23 times

earnings it was at about 16 times earnings for most of its big rise up through the 2010 decade so far far above its own historical multiple and you can argue some of that is justified and maybe they really can create another iphone like consumer, and i would be skeptical that you can follow up on the success of the most successful consumer product in history i think it's expensive phenomenal company and unbelievable earnings power, but you just have to really pay up to own it. >> i would be happy to pay up 33 times for a company that will compound and value in the way apple does tell me the names you're looking at and whether you think they can generate as exciting returns as some of the tech giants seem to be able to do these days. >> well, again, you have to look at the full-market cycle and not the last six months. you had amazon down last year 60%. you had facebook down 70

so there's huge volatility investors have to buy into, and if you look at the nasdaq for 23 years it's compounded at 3% per year so you're exactly right. you get huge booms that have happened like in the last six months, but unless people are timing their entry and exit perfectly, which for ggive me f being skeptical to do so and i think their returns are subpar when ones are overpaying for stocks and so what we like to do is sort of eliminate some of the risk as much as possible by just focusing on cash flows and particularly cash flows that come back to us in the form of rising dividends >> is it true that financials are an area that screens well for you and financials are coming off their best month since 2016 >> yeah. it was a great month in that regard, although it's funny. we get exposure to financials in a little different way than a lot of people think of because we're so used to thinking about financials as the banks and even though we do own j.p. morgan which has had a great year and

it's a beneficiary of some of the problems in the regional banks, the asset managers are really where we have bigger exposure and particularly alternative asset managers, apollo, all in our portfolio, and we think there is a huge theme on private credit and we like fee-based businesses that are not taking all of the risk on their balance sheet so they have huge earnings power without a lot of the volatility that some of the big investment banks have >> fair enough >> i've heard others that is a fan of investing with the financials that way and instead of having to cherry pick the regional banks and they might make it through okay right now what about energy and i was reading stats from nick wells and all of a sudden you're seeing overbought action in some of the main energy etfs here >> well, i think there's an interesting thing with this term base effect that comes up a lot when we describe inflation a number can look good or bad based on where things were a year ago and they're talking about earnings growth is down

and energy because compared to a year ago it was just up huge, obviously from the priors. so you're kind of trading base effects there and that's not how we look at it. both mid-stream and upstream we just view drastically improved financial metrics, lower debt ratios and lower leverage with far greater earnings power and really the commodities have not been a big tailwind. they hurt, but oil prices have stayed somewhere between the high 60s and the high 70s all year, and it's so it's not a commodity story. you have great earnings power. we particularly allow midstream because we're just under built for the infrastructure and pipelines and lng export terminals and we love the ability that have the cash flows that grow year over year and i mean double-digit growth in dividend. >> i didn't realize because i was off last week and wti is off 5% and we are about to talk real estate and before we do i want

to hit your play on this which is a little unexpected it's the simon property group and maybe we can show a 10-year chart. why do you like this and why do you think this will generate, you know, better than decent returns? >> yeah. i'm such a homer for simon property and we call it a mall giant because it's a high-end mall giant so it's not that kind of decrepit mall that's hurting a strip mall they own great assets and great real estate. in some cases they'll end up repurposing and they're doing condos and hotels and entertainment plazas and they just own such great brick and mortar and dirt and they bought j.c. penney basically for free so they could sell it to amazon for warehouses there's a lot of optionality for simon property and even apart from that optionality, the net operating income is huge and their vacationances are extremely low so we really like the story of simon property and

we're patient investors with a high yield of 7%. >> that might exactly explain if we can put up the ten-year char and to you, this is more -- if you're getting 7% a year on top of that then suddenly you stack that up and that looks a lot more healthy. >> and i would point out, too, that the stock is well up over 100% from where it was from when they shut down our country so people thought they're not going back to malls and all of that. simon property skyrocketed higher and they collected far more rents during covid than anybody thought and even in a period of flat stock prices, they have still actually doubled in total return because of the 7% over ten years. >> wow you know, the high-end mall play, simon property group david, thank you very much appreciate your time today. >> thanks, kelly. >> david bahn, is en with the barnsen group.

good news for renters and not so much for apartment reits which could be in for a rude awakening. diana olick? >> for the first time since the start of the pandemic according to apartment list. rents fell 0.7% from july of last year and it might not sound like a lot, but it is indicative of a bigger slide to come and rent growth peaked at an astounding 18% annually in 2021. month to month rents were up very slightly 0.3% and that's much slower than historical averages for the month all right. why are rents cooling? because vacancies are rising vacancies hit 7.3% surpassing the previous peak in june of 2020 we've been warning about new supply coming on and here it is. there are currently a record number of apartment units under construction and being finished. so let's talk about the reits and will react to all of this. names like avalon bay which is set to report earnings later

today and equity financial and apartment reits have been among the best reit performers as other sectors were hit hard by higher interest rates and we may start to feel pressure and equity residential reported last week with ceo mike perrel reporting the coastal markets where they operate is still favorable. demand is steady and they are mitigating delinquencies in southern california, but again, with all of this supply coming on nationwide, it's a big question mark, kelly >> there are two sides to the coin and those who benefit and those who don't. diane a thanks very much we appreciate it >> coming up, molson coors isn't usually a big name, and the sign that bud light has permanently lost market share it will be watched closer than usual. caterpillar and uber which report in the morning and that's coming up in earnings exchange factory activity in china is slowing for the fourth straight month. why are chinese stocks rallying? the china etf coming off its best week since january up 5%.

we'll dig into it with the chief economist of the china baseball book david scissors. "the exchange" is back after this ♪ ♪ this is "the exchange" on cnbc doors can lead us toward what's important. your dedicated fidelity advisor can help you open those doors. by working with you on a retirement-income plan designed to balance growth and guaranteed income. because doors were meant to be opened.

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welcome back to "the exchange." the busiest week and the midpoint of the earnings season is here with nearly a third of the s&p reporting and we have the action, the story and the trade on three key names which we'll hear before the bell tomorrow and we'll start with caterpillar and the industrial bellwether up more than 10% this year and at all-time highs as investors say what recession and certainly in construction and we have huge spending, supply chain improvement and china, all important things to consider from the report. let's turn to seema modi with the story on cat and jules financial founder and president. welcome to both of you seema, what are you watching

>> katrina is one of the most economically sensitive starts on wall street and the stock has seen sent imimprove and the upbeat report from ge lifting the broader industrial sector. when the company reports earnings tomorrow will real focus will be on inventory levels and has the efficient supply chain management helped levels normalize and is that helping profitability and margin growth going into the future for the second half of the year. the big upon toic of discussion is one of those chains that do have high exposure with 5% to 10% of its sales with the economic data worsening, we'll get a key read with what he is seeing on the ground in china as it relates to residential demand and construction demand, as well the stock nearing an all-time high and expectations are up there going into tomorrow's report, kell. >> that's a great point. are the expectation too high what would you do with the stock? >> yeah, kelly this is a tough one because we

do like the stock and we own it in a dividend model and the expectations are too high and it's with a sell the news and i'll put a sell on it into earnings and we're not selling any at this point, and we're certainly not buying it into earnings and as seema mentioned, inventory levels will be very important and that's what hindered the story last quarter, but also 75% of caterpillar's business is non-residential and is going to be benefiting from both the infrastructure bill and the c.h.i.p.s act and the tremendous amount of data storage and warehouses that's transpiring here in the u.s. and we think the company will have good things to say tomorrow, but i do think it's set up for a sell the news and any pullback whether it's specific to the stock or market related, i would be a buyer of the pullback 263, and only 10% of the year and we'll turn, seema, thank you to uber now. the stock has doubled since jan 1 and it still is expected to report a loss of about a penny

and as it continues to push toward profitability and oppenheimer says that could tip the company to be included in the s&p 500 and remember when tesla was included let's turn to dom chu with the story on uber. >> kelly, what we're looking for is the latest sign for what life in america looks like and will look like in a post-pandemic world. what i mean by that is a lot of things have changed in the wake of the pandemic and a lot of paradigms have shifted with office work and dining out, versus delivery and other types of thing and uber and its competition has shifted in a lot of different ways and it's shifted from the uber eats and foot delivery side from the pandemic and people are traveling more for pleasure, and as things ramp up for travel and commuting as the summer winds down and more stringent return to office policies start taking hold this fall, this winter any kind of commentary with uber with regard to ridership trends will be interesting to see and of course, any updates on legal matters tied to that more

overarching question about whether drivers and whatever jurisdiction they're in are actually contractors or full-time employees and that's still playing out in key parts of the country, as well and there's a lot to watch for with those numbers. >> the profitability issue, quint does make the stock look expensive and whatever you want to call it this question about earnings and profitability really looms large. >> it looks expensive based on the numbers they have right now, kelly, but if all of a sudden you look forward and this company is expected to turn a dollar in earnings in the next year, assuming they can get there. all of a sudden, we're not so expensive in relation to how fast they're growing, but as dom mentioned, the number of rides is going to be key that we're looking for. we, like uber, have liked it for close to the lows and it's been one of the better trades since the bottom of 2022 and much like caterpillar that is up 65% those 2022 lows and uber is up 140%

off of the 2022 lows chasing the momentum is difficult. so i'm not adding this name into the earnings report and any market or stock-specific decline i would be adding. i think the stock goes a lot higher we are just now getting back to where we were in that 2019 hyped ipo. the stock's only up a little bit from there we think it goes basically back to new highs, eventually over time through profitability and cash flow, but it's going to take time and we're a buyer of pullbacks here for sure. >> that's a great point, and it wasn't 45 and the ipo price is at 49 now and it's the 49 now and it's a chance at a fresh start and kind of like when halftime sore scores back to 00. and molson coors reports it is up 35% year to date and coors and miller light brands has seen growing market share from the bud light fallout and this is interesting and these shares are still more than half off their

highs from all of the way back in 2016. this is kind of macro. beer consumption to your point around molson coors are being framed even just today by what dutch brewing giant heineken just reported over in europe today it cut the profit forecast on lower beer consumption trends and rising costs heineken did pass along some of those price increases to distributors and ultimately consumers and what happened to a certain degree was a trade down effect and they turned to cheaper alternatives and cheaper labels for beer. for molson coors which is a competitor is there still premium versus budget friendly considerations to take into account is beer overall still a growth segment? if not, then where is it hard seltzers and alternatives and molson coors has the simply spiked brand and the topo chico among others and

what does it do with its pricing strategy a la heineken in response to the time being and beer is a tough question whether you're a.b. inbev and molson coors. >> my cooler observation went from summer parties is beer is not popular and hard seltzer is, but everyone's excited about new sodas with, you know, hey, it's only got this much sugar and these different brands i haven't seen this much excitement for non-alcoholic soda in a very long time >> you're right, kelly, and out of the three stocks we mentioned today, this is the only one i'd be a buyer of into earnings, and i think people underestimate the shift while they're maybe not attracting new customers in the seltzer soda market, and i think they're still taking market share from bud light we saw over the last couple of months 13% month over month,

coors light uptick the traditional 52-week average is around 5% or 6% so i think they'll continue to take market share and that's going to result in, we believe, better earnings to the company, and i think that as you mentioned this one has not had a significant run off those lows yes, it's up considerably for the year and it's certainly not stretched. we do believe there is a trade here, and i think that you could take this trade with the stock below 46, and i think we look to a move for highs in this name. >> that's super interesting. p-e is up about 13, as well and reasonable we'll leave it there thank you, quint, and dom which you on earnings exchange we'll see you when gavin hattersley joins us when those cross. look for that tomorrow at 1:00 p.m. eastern you don't want to miss it. >> sofi, the stock is over 11 bucks now and we have the

highlights on the call on the long-awaited path to profitability and that's ahead before we head to break, let's get to "show & tell," sweet green balancing back after the weaker than expected quarterly results and upgraded the 19% price target and saying they improved in the coming months on strength, and here's what jonathan told them about the automated kitchen location ♪ >> in its first month of operation which typically, we see a lot of ramp happening we were at a 26% margin at that store, so we see some upside to that over time, and do think the margin should be significantly higher than the rest of the fleet. your business however you see fit. rosie used part of her refund to build an outdoor patio. clink! dr. marshall used part of his refund to give his practice a facelift. emily used part of her refund to buy...

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welcome back to "the exchange." we have a 3% rally for the dow in july. and this is the last day and it is only up 11% and it was briefly negative and the s&p was down today check out disney, number two in the dow right now helping that green after ceo bob iger has reportedly brought back two big-name former execs, kef vin n thomas staggs. >> they were ones considered heirs apparent to the media giant and investors may be a sign that iger is taking his succession play as a bit more seriously. we are up almost 3% today and down 3% since he returned as ceo. you can see the metric there >> good rx is surging after t.d. cowen upgraded to outperform it is up 35% to over $9 a share. they doubled their price target

to 12 and that's 80% up from the close and the management with express scripts and that solidified its place in the ecosystem all while generating a new revenue stream for the company. the shares are having their best day since going public in late 2020, but as this chart should always remind us, they're still down 90% from their all-time high of $64. coming up, china's road to recovery has been above, but the country could be starting to turn the corner according to my next guest derek scissors from aei and the china beige book join me next to explain. and now cnbc "trend tracker quote ". ♪ ♪

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♪ ♪ welcome back to "the exchange," everybody i'm tyler mathisen with a cnbc news update. a georgia judge denied an attempt by donald trump to stop an investigation into whether the former president interfered in the state's 2020 election the judge called his allegations of wrongdoing in the probe overwrought and found that there was no legal standing to block the investigation. this is the second ruling against trump in two weeks a third petition has a hearing scheduled in august. iowa is the best state for retirement a new survey from bankrate finds the hawk eye state ranks high in areas such as affordability, cost of living, crime levels and the quality and cost of health care it does not have something florida has and that would be beaches, sand and oceans, but iowa knocked florida out of the top spot this year and it's

followed now by delaware, west virginia, missouri and mississippi in the top five. how do you like that actor, comedian writer and producer paul reubens known for his character pee-wee herman, he believed in the importance of kindance and fought a battle with cancer for years and he was a young 07 years old >> sorry to hear that. tilers, thanks very much. china reporting another round of weak economic data overnight and manufacturing better than expected and has still contracted every month since april, and pmi down for the fourth straight month coming in shy of a contraction and chinese leaders are looking to jump-start demand. they signaled more support for the troubled real estate sector and pledged to help boost consumption. they stopped short of announcing tax or spending cuts or

large-scale stimulus my next guest says if china sticks to spending they'll only have deflation and it could be a matter of time here senior follow with the american enterprise institute. it's great to see you again. welcome. >> thank you earlier it sounded like maybe you were thinking china's turning a corner here economically do you think that? i saw that the stocks were up 9% last week. >> i think that there are signs of a possible improvement. i would not say it's turning it a corner the trend for the economy is worse in terms of july looking worse than previous months and the signs of possible improvement are not stimulus they're not more borrowing and construction spending and there are signals that the government is giving the private sector and it wants to do more than what it wants to do and those signals don't necessarily mean anything. it could be a fakeout and it could be the government saying we still want you to do what we tell you to do in which case

they amount to nothing, but that's the hope. the way the economy turns is that the economy starts stamping on its own private sector. although it seems unlikely, doesn't it maybe as a final act of desperation, but does anything say to you that that's a path that they would go or what is a sign that they're going that route or calling it something else maybe to make it more palatable or what have you >> as you merchandntioned. it is a whole raft of measures and it means they don't have one that they think will work, but one of the things they've announced buried in there is asking the private sector especially in technology to give them case studies of how the private sector has help head the economy and helped society and, you you know, that's the worst and if they're convinced by that they might say oh, we didn't know that. why don't you guys do more of

this i'm not guaranteeing this by any means and it is a new development in, say, the last five years. >> sure. again, when we're looking at those gradual signs and that kind of thing. so do you think stocks are right to be more excited here? >> well, on the chinese side i just don't believe the chinese stock market is ever right about anything its peak was in 2007 so people talking about the great rise of china, that's not the way the stock market -- the chinese stock market sees things it's dominated by companies that don't honestly report earnings and so on. >> when you talk about overseas stocks betting on china, it's only a matter of expectations and we've had a lot of people calling for a china boom this year and that has clearly not happened and now we have the economy weakening, and they seem to be betting on a government response >> i think there's a chance of a government response, so if you think stocks are beaten down and trying to expose stocks that are beaten down, then i think it's a good bet and no one is thinking

the economy will return for sure. >> that being the case, you have to wonder about the global impact and when we debate recession odds and if we were 2007 and china was entering the global market i could be excited about the upside than in 2023 and we're trying to figure out if we're going through japanification >> right there is a long-term problem that only reform can address so if you think there's major stimulus meaning borrowing coming and that could help you for a period of time and then it ends and now you're stuck with what do we do now, that would be a very short-term bet on stocks or other sorts of assets and if you want a long-term bet on china, it has to come through reform and the only thing that matters is the kind of releasing the hold on private sector signaling in steps that we discussed. >> right so we kind of spin this forward, three months and six months and we're looking for a big-bang effect and would there come a point of des pragsz in which the

leadership says okay, we see the numbers and where they're pointing and we have to pull out the bigger bazooka here. >> i don't want to contradict myself because i think there's a chance that they will turn to reform, but i don't think the chance is 50%. i think it's considerably lower than that, and there are other sorts of tools that are not going to work. you mentioned in the opening, construction spending. young people don't want those jobs and they've over built a lot of their infrastructure they are heavily in debt and i don't think the monetary stimulus doesn't work and i don't want i don't want it to come to the rescue of traditional chinese stimulus and the chinese government has shown tolerance of what we consider to be the weak, and their motivation isn't that high. >> totally i think it will allow the private sector some steps and they'll be fine with what we think is a weak performance. >> and investors be warned if i can rephrase it as such.

derek scissors from china beige book and aei >> still to come, sofi's personal loan business breaking records in the quarter we'll hear from anthony noto with shares up 20% check out shares of xfin after a neutral and after the collaboration with volkswagen was announced last week, but ubs note the share price has tripled since november and near-term catalysts are priced in and it is in a fierce competitive market and another chinese name today. "the exchange" will be right back ♪ (don't cha by callaway/ray plays) ♪ ( ♪ ♪ ) don't cha wish your phone was fun like this? ( ♪ ♪ )

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♪ welcome back shares of sofi and have we not followed this saga month in and month out this year? they're up 20% now to over $11 after strong earnings and a guidance site. let's get to kate rooney with more on these results and what's going on with the personal loan business, kate

>> a really strong quarter for the lending side here. sofi put a lot of wall street's fears to rest in the second-quarter results this morning and it laid out a pretty optimistic picture for the back half of this year and saw really strong loan growth and beat on most major metrics and the investors raised full-year guidance and loan originations through 37% and personal loan originations are a bright spot there up 51% and that was a record for the company and strong net interest income also driving that beat and deposits were up 26%y sequentially. the fintech trend appears to be on profitability and i spoke to act m anthony noto, and he also highlighted strong margins in lending and more revenue per user and also the company's ability to diversify revenue wall street analysts this morning were overwhelmingly positive on the quarter. dan of mizuho telling me some of

the fears about sofi being able to sell loans were put to rest and he highlighted some of the rates in tech services and the uptick in personal loans and home loans, as well. also some upgrades on the street we're seeing this morning. kelly, back to you >> they're using this as a student loan proxy this is very different, and when i hear personal loan demand was way up, i go, well, i guess that's good for them, but is that a good sign for the economy? >> right >> as far as the macro backdrop that could indicate different things about people needing to take out more loans. they actually have, as far as the picture this might paint about the consumer, their customer base tends to have a higher fico score something like 740. it's sort of on the amex side of things maybe the higher income, younger tech executive, for example, the income tends to be $125,000 a year and anthony noto telling me it gives a certain picture of the demographic and slice and consumer spending is strong there and they also have the

debit card side of the business and they are factoring in the mild recession and still raised guidance with that in mind and the other thing that's been a hang over for the stock and the company has been the student loan moratorium, so student loans are pretty much flat and that's been hanging out there for three years or so, and at the end of this year and should help the business and people need to start paying interest on those loans again. >> the shares are up 150% since jan 1. the other thing that i sometimes wonder about when i see the rates they're the ones that you can get on the more short term savings and whatever they call it and if that will be an earnings problem and they didn't show much of an issue yesterday, but did that start to squeeze? >> sofi is one of the few fintechs that are a bank they got a bank charter by acquiring the regional bank and they tend to be better and it's one of the reasons they can compete on i hooer rates too soon to tell, obviously if

they start dragging ask higher rates helped them in terms of the economics and the net income where they just partnered with the regional bank and you have a square, block or robinhood and they don't tend to get as much upside and in the near-term, high are rates have absolutely been a boon for them and that higher yield when people are searching for yield has really helped attracti some of the deposits and it's helped in the near-term as a customer. if we got people to take out loans and that's a nice interest margin then i can see that being the whole idea here. kate, thanks >> exactly >> i was going to say flywheel >> i know. good buzz word, right? >> exactly but they did it. >> still ahead, it's not just big tech getting a boost from a.i. we'll talk to the ceo of a reit seeing pretty big gains this year and that's next on "the

exchange." the dow is up 36

exchange." when you invest in ai the first thing that usually comes to mind are chip stocks and big cap tech but there may be other ways to play the revolution. one company getting a big bounce is digital realty, up more than 20% since january 1, they operate more than 300 data centers worldwide and are cloud neutral. they have microsoft, google and

use nvidia here with me andy powers the ceo of digital realty. >> thanks for having me. >> this business is kind of ingenious in the sense that -- i mean, what would you call yourself, a warehouse play, a real estate play explain this a little bit. >> we build, own and operate the physical infrastructure, the foundations for my customers, servers and their data, supporting 5,000 customers across six couldn't nents on their digital transformations. >> i'm going to put it the way that you probably don't want, but you have giant data centers and that kind of thing filed with different customers who use different technology you are not a utility but you're operating that model of -- so how much of this, you know, maintenance or anything like that really falls on you >> we're focused on the physical infrastructure, the thing about your typical commercial real estate on steroids for redundancy and connectivity, customers are putting private work loads and public cloud providers with us and having seamless connectivity amongst data sets. >> we talk about real estate, we

talk about ai. what's the ai play here other than the fact that the more people are using artificial intelligence the more computing power they need thus the bigger warehouses and bigger rent checks you collect. >> we are in an industry that's been growing for a long time now, the company is almost 20 years old, we have had these digital transformation waves of demand, cloud computing was the most recent and largest. ai is just hitting the scene and it's in its infancy. talk being new use case that is need higher power densities and cooler features but a runway for growth we are helping support our customers on their digital transformation journey into picks and shovels gold mine type thing is the pe is over 100. you have had an amazing year and people have thought this through and realized you are sitting in a pretty nice position how do you justify a multiple like that or what is the growth you foresee where people to co-say i got in at whatever the price you are in now and at how

they've compounded this over the years. >> we are in the real estate category, the first data center read, you look at an ffl multiple or afl multiple that doesn't deduct appreciation because our assets are appreciating over time to normalize. we made great strides this year on the customer value propo proposition, great quarterly signings, second highest new loads just this past thursday, we've been bolstering our capital sources, made great progresses on that front we have more room to run and more progress and we see a long wave of demand ahead of us we are looking to step up and serve our customers. >> jim chanos has been short data centers like yours for probably over a year, about a year now interestingly enough the short interest in the stock looks like it's falling a little bit. it's approximate 6d% at recent check. what does that tell you. >> we were a show me story this year, i got into the seat as ceo at the end of december, we had to make progress on customer value proposition, funding model, deleveraging and the last

two quarters we made a lot of progress on that and we have ee shown up with those results and investors are taking notice. >> what do you do as people are flooding into this space or looking at trying to eat away at your profit margins and the opportunity here >> the pendulum on supply and demand has moved in our favor. we've seen moratoriums, power constraints on transmission and generation, and the kilowatts and megawatts becoming more and more precious and the cost of capital is no longer free. we've built a large runway of growth for our customers, bolstered our capital base and we think we will be able to propel the growth with that backing. >> does it get more expensive the hotter it gets joutside? >> it does get hotter with the air conditioning units trying to serve the units but this is a mission critical need for our customers. they can't turn the data center off when you're hitting 100 degrees fahrenheit. >> give us an example of the range of customers you have.

>> we have 5,000 customers you can think of the largest customers of the largest cloud service providers and tech companies to general corporate enterprises, network service providers, major financial institutions enterprises including numerous industries from health care to retail to manufacturing of all sorts. >> do you think there's any danger of there being a bubble of excitement around ai? i know it benefits you in the long run and is priced in now. do you look at this and go, okay, this hype cycle the reality will be more nuance to play out >> there is no question artificial intelligence will change the world we live in, hopefully in a better framework for all mankind. i don't think the hype cycle relates to digital realty and data centers we are providing foundational solutions for the ai to happen and the innovation to be unlocked it's not just been -- our stock did not jump 100% in a day or anything like that we have the physical ingredients to make it happen and i think we've got the wind at our back.

>> you passed through the utility cost which is maybe the most genius part of the whole thing. andy, thanks for your time "today." we appreciate it andy powers. and that does it for us on "the exchange" today speaking of commercial real estate, the latest read on the lend something coming up on "power lunch." tyler is getting ready, i will join him on the other side of this bakre this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay. (fan #1) there ya go! that's what i'm talkin' about! (josh allen) is this your plan to watch the game today? (hero fan) uh, yea. i have to watch my neighbors' nfl sunday ticket. (josh allen) it's not your best plan. but you know what is?

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