could happen. a good time had by all. >> all right have a good weekend, everybody see you on the bell. ♪ thank you, scott welcome to the exchange. i'm kelly evans. here's what's ahead. the president-elect's latest pick sending ripples through the pharma industry. the vaccine maker moderna seeping the worst declines, you down 7%. a former senior hhs official weighs in and why some of the changes may be a net positive. the view from a health care ceo where he thinks we might see the biggest impact.

wo big tech names one gues calls underappreciated the one he favors goes against market consensus our mystery chart on evaluation basis, 17% discount to the s&p can you guess it tweet me and our market guest says the investment world changed on election day for the betterful he joining us where he sees the biggest opportunities amid the disruption we have witnessed in the past, what is it, ten days, dom? over to you for the markets. >> it's been a good stretch here one that we have seen turn a little bit now so speaking of that move, the ten days and everything else, let's give you the headline. near session lows today. across the board for the major indices. the dow at 43,403. a three-quarter of 1% decline. the broader s&p 500 is at 5867, down 81 points this represents just near session lows if not session lows at the highs down 334 points we are down nearly 1.5% here

the nasdaq composite off 2.25%, 441 points shaved off the nasdaq, 18667. since the day before the election to the post-election highs, the s&p 500 ran up by roughly, call it, 300 points we have given back roughly 150 points since we pulled pack from the highs. so the post-election gains have been halved, in essence. another place we are watching weakness, six-day losing streak for gold futures north of 2,800 was the record high that we saw over here just in the last couple of weeks, and since then we have dropped by roughly 8% on that trade so again six-day losing streak, gold prices, we talked about the dollar strength being a part of that trade, this idea that maybe growth, inflation, all that mix of stuff is translating into gold prices being weaker keep an eye on gold. and kelly mentioned moderna. one of the worst performers in the s&p.

the vaccine makers, biotech and pharma in general, negative on that move to nominate robert f. kennedy to the health and human services secretary role. but moderna off 7% beyond tech, which was the partner in the covid-19 vaccine, off 3.5% viking down 6.5% large cap names, pfizer, eli lilly off 4% as well keep an eye on the health care sector vaccine makers very much a key back over to you. >> thank you very much as the trump white house begins to take shape, tackling every angle of the transfer of power to his reported plans to kill the tax credit. what rfk jr.'s department of health nod means for future and pharma let's begin with semis shares are down nearly 8% after soft revenue guidance overshadowed the q4 e.p.s. beat. they are not the only one in the

red. nvidia still near all time highs, trading lower 3.5%, awaiting q3 results next year. the managing director of mizuho, welcome. for those of us whose brains are fried from the past ten days, why is it down today >> so i think the quarter was in line, but the guidance modestly down, and there is some headwinds in china that's a little bit of an example into 2025. plus, might be the chips, much of the funding has been disbursed but the undispersed funds might be under delays and being doled out. even though that is pretty bipartisan, i would say, but it's basically what is around tnld or increased restrictions impacting into next year, and

any on the chip side. >> investors are worried there is not more funds from the c.h.i.p.s. act to prop up some of these names you seem to be treating it this as a buying opportunity. is there a larger reason to be concerned about the performance of semis from here >> no, we don't anything has changed. structurally, they still dominate the space it's a consolidated market there have been very few global equipment players you can really invest in. the number one prior spire /- we like the space as well, yeah. >> let's move to evs electric vehicles. president-elect trump is widely expected to pull the ev tax credit program once in office. it's something elon musk who is part of the administration has been advocating for a grass fires now. while into may seem strange, losing the credit could hurt some u.s. demand, tesla's

pricing, scale and scope is apples and oranges compared to the auto industry, including when the tax credit appears. something long-term tesla bull and billionaire investor ron baron said on "squawk box" this morning predicting more growth ahead. >> tesla i think is going to be worth three or four trillion dollars, five trillion dollars, in ten years based upon the business plan that i am aware of and then elon believes that more return is going to be worth 30 trillion. >> so, obviously, those are big numbers. very heard him before when it comes to tesla i was struck by the fact, and this was an industry publication, how the cars are deadliest of any major automaker. i believe there will be more scrutiny on that question, questions of autonomous driving, self-driving, so forth if the new administration starts seeing the technology deployed or accelerated. >> yeah, no, undoubtedly, i think, tesla is going to need --

globally to dominate the market. they have good profitabilitiability they have a strong supply chain and they have done an exceptional job bringing it to market basically global footprint in china and the u.s. and europe. but that said, when you look at the numbers, you know, obviously, if you take out the ev credits and that's what they talked about, it's almost a $7,500 headwind to tesla sales because any beyer today under the income limits whether you buy outright and leases gets the same upfront if you're right. disproportionately hit the other evs who have not -- nonetheless -- number two, i think there is a battery credit that goes out on the subsidy program. those could be impacted.

and so those also by compacting -- those are two big headwinds we see going out and the flip side, increased tariffs on european -- coming in which might be positive for tesla because it makes them more available. but basically going to be a dampener on the entire automotive market. >> thank you for joining us. appreciate your time. sticking with washington, corporate america is bracing for president-elect trump's proposed tariffs and preparing to pass those costs along to the consumer megan is here with a closer look >> may, kelly, that's right. all signs are pointing to tariffs taking affect as soon as the first quarter of next year while specifics of exactly what's coming are still in flux, we took a look at company earnings calls to gauge how much companies are thinking about tariffs at this point.

now, transcripts show that the number of s&p 500 earnings calls where tariffs are mentioned doubled between the second and third quarters this year more mentions in q3 than all of last year combined executives are discussing different approaches to tariffs. a lot of talk of rerouting supply chains, some moved production out of china in the first trump administration hoping that might benefit them this time around there is no shortage of companies saying they will pass any tariff hikes directly on to consumers through price increases. this on the screen is by no means an exhaustive list some firms saying this quarter they will raise prices to offset tariffs. for a flavor of what they are saying, here is the ceo saying there would be price hikes coming out of the gate and auto zone's ceo saying they would pass their costs through to the consumer and we both know raising prices isn't the only path forward here but this raises questions about inflation for one, and it also

counters the point we have heard from the pro trifr crowd that foreign countries will be the ones take the tariffs. >> there could be some competitors who say they are going to much like we see in times of inflation, deflation, so forth, pass it fully along, others will be try to be more opportunistic. >> they are. would they rather eat the cost and keep production in china or wherever it might be, or try to invest by rerouting the supply chains and avoid them. we don't know. we hear things like companies stockpiling now, hearing some companies that are hoping that because they moved production maybe to vietnam in the first trump administration that they will be safe if it's universal tariffs, maybe nowhere is safe. we don't know yet. >> when companies say they will pass the costs along, what are the hypotheticals they are laying out >> they are trying not to get into specifics tim cook said i will punt on that question. in the earnings calls we know that they are weighing different options. something like a 10% tariff,

even 20%, that could probably get passed directly along. 60% on anything coming in from china what's harder to eat the entire cost or pass along the coast. they might have to spread spread it out a little bit more, might be looking at sort of different places to source input components from. they have to get more creative. >> thank you now, my next guest says for the investing world the fundamentals are in place for a robust economy mark is the president of potomac wealth advisors. welcome to you >> good to be here. >> one of the questions is how much of this is still -- we have priced in a lot. we are getting some back now where do you see the opportunities? >> well, the election changed the undercurrent that was happening. there was a lot of regulation. that's a cost for business every step of the way. there was concrete talk about higher capital gains taxes higher corporate taxes

and when you include an opportunity to have less regulation, less tax on companies, less tax on corporations and then you have a more benign 34er7b8g mergers and acquisition environment, that's what we believe changed. it will ultimately depend on corporate america to deliver earnings and they are going to deliver earnings through their continued efficiencies and the use of technology and that's how we get to our thesis that continuing to invest in tech makes the most sense for investors. >> and broadly speaking, mag 7, i mean, sometimes you get names like netflix or tesla in there which ones do you think are most attractive >> well, we like the fact that there have been headwinds against great companies like microsoft and google and specifically the recent action against both of those companies and the huge overhang google has in the courts from the u.s. government and elsewhere we think that's going to go away we think that donald trump loves

a strong stock market. yes, he likes to go after companies that he feels are a little unfair, but he likes a strong stock market and a strong legacy even more so there will be a lot of jawboning and that will keep a lid on the stocks. eventually, it will be clear that there will be a more benign regime out of washington and there will be more talk than action against america's best companies. >> you like those microsoft, alphabet, apple, the big tech platforms, financials, deal making, could see extra premium there. could we talk defense? that's an area in the past we thought beneficiary of kind of the conflicts breaking out in the world, kind of a steady place. now a lot of that is being called into questions these stocks are down big. >> they are down big in the past few days if you look at companies like rtx up over 30% in the past year lockheed not as strong but still solid. and unfortunately global

conflict is not out of vogue and we're firing off missiles, we're flying drones, and the companies that make those and the defense systems against that sort of war sfar is going to remain intact. i know valuations are higher than they were a year or two ago when we started talking about this, but until we see a more peaceful environment, we're going to continue to think this is not only a good investment, but a hedge against tail risk. what could bring the market down is this global uncertainty owning defense stocks gives you a little bit of a hedge against that. >> are there other areas that you think are unattractive here either because of valuations or, you know, event risk now >> well, i think there is uncertainty in health care health care lagged -- has been lagging, continues to lag. it's also a very heavy -- it's full of regulation, which slows things down. i have been really surprised that the medical equipment manufacturers, some of them have lagged even though i would think demand with an aging population

would have made them more attractive when you have a regulatory overhang and politicians banging on them nor price and with the recent nominations, not so sure health care will be a growth engine and that's not an area we are high on. >> it's perfectly said in fact, you lined up our next discussion quite nicely. mark, thanks for your time. >> good to be here. as mark said, health care is by far the biggest lagrd this week they are flirting with the worst performance since late 2020 as wall street wonders what impact robert f. kennedy will have. we will ask a former hhs official about that and get a view on the fallout for medicare and medicaid. plus the triple qs lower mark likes big tech. they are down 2.5% the triple qs wiped out the post-election gains and are on track for the longest losing streak in nearly a year.

still one analyst says two of the mag seven are underappreciated and undervalued. we will speak to the analyst behind that call "the exchange" is back after this >> announcer: this is "the exchange" on cnbc.

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big pharma is falling after president-elect trump nominated vaccine skeptic and environmental activist robert f. kennedy jr. for secretary of helicopter helmet. if confirmed kennedy will oversee public health, government funded insurance plans and medical research he has vowed to purge the food and drug administration. just how far will he go with shaking things up? let's talk about that. lee, mike. it's great to see you both lonnie, let me begin with you. how much scope and remit will rfk have >> the secretary's important no question. obviously, in setting the tone of the agency. one of the things i really counsel people to realize is that there are a bunch of senior jobs that are very important at the agency whether it's the head of cms, head of fda. those are yet to be announced.

they have a tremendous amount of latitude in the regulatory process along with the deputy secretary. nordisk we doecht know where rfk stands on a lot of the key questions around insurance coverage, medicare, medicaid we know where he stands on public health issues to some zree there is a lot more of the story that remains to be written. >> so you have kind of -- you have been inside the institution. what's a triple can day like how many different things are up for decision if he came in with a mandate, i want chemicals out of processed foods, to could he snap his fingers and start to make things happen >> probably not with that amount of quickness there is a regulatory process that is usually overseen by the deputy secretary the secretary has the bully pulpit that's important the secretary helps set priorities as long as it's consistent with what the president wants. so i don't want to understate the power of the secretary i would say that there are a whole bunch of mechanisms in the department

80,000 people work at hhs. there is a mechanism of government that that will be happening here that goes beyond what the secretary wants or will do on a day-to-day basis some of the tasks, there is some influence here the question becomes are people who work and run those agencies like cms, like fda in line with where the secretary is or are there differences that we will have to see. >> right funny when we talk about what influence he might not have, makes the case for the government big cap bureaucracies. let me read off the markets that we see today 52-week lows than high in the s&p. the bulk in big pharma names and processed food consumer staple stocks medicaid player, they are down biogen, the vaccine names. but also even companies like campbell soup, hershey, kraft heinz. would you be fading it these moves or do you think they are

significant in telling us something? >> well, there is a little bit of overreaction. i understand around vaccine issues and that is something where the nominee has been clear on a point of view if you look at health care broadly, there are a lot of questions we will be encountering about which we have to figure out where the administration is going to head. the future of medicare advantage will be crucial on the payor side how hard is transparency pushed? something like site neutral payments that have been talked about in medicare. that will affect the community we have a lot of things to figure out here. i see overreaction i expected that. really we have to keep calm and carry on here because there is a lot of different kinds of questions, policy questions that we don't know the answers to quite yet. >> i am glad you raised the issue. you could ask is it a bigger deal to have him at a hhs or bigger deal to have this doge committee looking for savings and is probably going to target

the biggest area of federal spending 28%, medicare and other health programs and obamacare subsidies. >> medicaid is massive that's the single biggest growth component for state budgets going forward. you are right to mention the aca subsidies that are a large extension, expansion of the subsidies in pandemic recovery bills and the i.r.a., the trump administration may allow those to lapse that will impact what happens on the coverage side. so we have a lot of things left to see in terms of where that goes and the doge committee we will see how much power and authority there is there, if it will be more recommendations, they go to congress potentially to get some more teeth io the cuts that might come your assessment of the fiscal picture is right the long run trajectory is about medicare, social security and medicaid. >> where is an area you think you might have a big impact? where is an area of, you know, been there maybe not in recent

years, you think is ripe for more disruption or maybe more of a rethink? >> look, the public health bureaucracy, no question that has in many ways gotten disassociated from where the american people are. i think the fact that we see a low amount of trust in many of these public health agencies, the relationship, there has always been a challenging relationship between what i call the fa the alphabet super of agencies part of this portfolio i think it's important for us to understand that public health agencies, there are some issues that need to get resolved in terms of how they work together, how they dispense science-based advice that the american people trust. right now there is a trust deficit we have to deal with in that sense i think? pick could be transformational in looking at at how those agencies might work together and ways of making sure that the american people get the best advice that is driven by science but also driven by not a forceful set of mandates, but

helping people understand that they have some decision-making authority in their health care decisions as well. so that's something i think we could see an improvement on in the next couple of years. >> i think there is an appetite to improve what's going on with transparency in the food system and what's allowed in there. thank. appreciate your time and my next guest is bracing for disappointment because he runs a health care tech company, the ceo of anomaly mike, what do you foresee? welcome. >> great to see you. thank you for having me. >> let's talk about kind of day one, day two, month one, month two. a lot of people say wait and aid low the dust to set. sounds like you are thinking this through >> yeah, i think makes an interesting point. i think the initial impact that robert kennedy, if confirmed, you know, would have is with the bully pulpit i think the one clear mandate he does have and will use that pulpit for is chronic disease

and chronic disease management and that will -- and anything that they change will be delivered through medicare, medicaid so when i think about what that might impact, to me i go, you know, right to who is providing, you know care through the plans, how might that jostle around star ratings, example. we have seen star ratings currently, as they are currently kind of thought through in a commercial medicare advantage now. i think to me that's what i would look at. but i think this is a big change all bets are off. >> you guys also kind of set sit in the middle of this health care bureaucracy and infrastructure where do you see areas that could be ripe for transformation or disruption? >> your previous guest spoke to transparency pharmaceuticals are in the crosshairs prior to this appointment and prior to president trump winning the election, i think one thing both parties agreed the cost are drugs are too high no one seems to have any idea

what goes into the negotiations for drug costs i think transparency will be injected throughout. i think that was largely bipartisan i will keep an eye on transparency in health care, what's in the health policies and plans, you know, how, you know, health care insurers adjudicate payment and i think a swath of things that were either too complicated or done behind closed doors i think there is likely to be opening up there i am tracking that closely. >> if i say to you kind of just as somebody who has a bunch of experience in the industry, not because you is the stats, for every dollar spent in the healthcare system today, how much that is waste >> i think $500 billion in billing insurance-related costs transacting back and forth half to three quarters of that could be waste in a $4 trillion health system. we are talking hundreds of

billions of dollars. there is waste that go away through the use of better technologies you have to be thinking i sit at the head of a $1.7 trillion budget the largest in the u.p.s. even bigger than the department of defense. i have a vested interest in attacking that because it affects me and that's just transacting. and there is fraud i think most recent estimate i saw is anywhere from two to 300 bill a year in medicare fraud. we are talking big dollars here to shine a light into. >> you are right to emphasize. he will have a remit over a huge swath in the budget and based on what you were describing, if you want work with musk and ramaswamy, they are looking for people to kind of come up with lists and ways to tackle this. but i suppose even though, mike, it's one thing to know that waste exists and another to be able to really figure out how to kind of cut it out of the system. >> yes e yeah. well, one, it starts with trying to figure out -- think about

hhs, right 80,000 employees 13 agencies sit under the hhs umbrella you know, not really super well coordinated among them so there is a huge coordination challenge. but there is also, you know, i think a huge technical challenge where, you know, i think the technology, in my industry, could lean in. last time i was here we were talking about vice president vance on the trump ticket, you know, favorable to technology and i think, you know, there are a lot of avenues available, you know, to us whether the government or private sector to smien a light, you know, into what it means to, you know, disburse a medicare payment through the commercial surer via medicare advantage and see if that money being well used i think prior to more modern technologies that was really, really hard to do and there was a lot of trust involved there. now we could look at, you know, that in a much more holistic high fidelity way and really shine that light. >> i don't want to say blockchain, but the idea of kind

of tracking exactly how those dollars are being spent and moving through the system. mike, thanks for your time really appreciate it. >> thank you. and coming up, warren buffett's berkshire hathaway busy making moves. through the new positions and sales ahead. as we about it to break, shares of palantir a record high as the company announces plans to transfer the listing from the new york stock exchange to the nasdaq it's expected to meet the requirements for inclusion on the neighborhoods one money, the qs have been where there are so many investor flows and interest shares up 50% this month and nearly 300% since january. it has now surpassed vistra to be the best performing stock the s&p 500 this year. "the exchange" is back after this

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release the report on allegations related to matt gaetz saying to release it would be, quote, a terrible breach of protocol gaetz is no longer a member of congress gaetz resigned after president-elect trump announced him as his pick for attorney general. nearly 75% of adults in the u.s. are overweight or obese research published in the lancet found from 1990 to 2021 the rate of obesity in adults rose more than 40% the study's authors warned that number could continue to rise to nearly 260 million americans by 2050 without aggressive intervention and firefighters are continuing to battle wildfires in new jersey and new york as drought conditions persist in the region fire officials from new jersey and new york say the jennings creek fire continues to burn with about 400 personnel from over 40 agencies currently battling the fire.

the jersey side of the fire is at 90% containment, and the new york side at just 65% containment. kelly. >> is that the one that's affecting us >> i am not sure i am not sure. it's been, you know, with only one day of rain in the last 35, it's been a terrible time. >> i was shocked to walk out this morning and have it be incredibly smoky all over again. so i hope -- >> yeah. >> thanks. coming up, stocks are hovering near record highs despite the recent pull back, but two names that one analyst says are undervalued and underappreciated michael nathanson reveals them and makes his case don't go anywhere. we're back after this.

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welcome back as investors have favored meta over alphabet this year, meta shares up nearly 60% compared to alphabet's 23. my next guest agreed until six months ago but with third quarter earnings in the books he points out the rare instance of google cheaper than meta and while he concedes there are regulatory concerns,

says alphabet's stable growth and margins give it the edge for now. i don't think we need to hear from you i made the case. he is the senior - >> good job. i'm done >> maybe the way i would be curious is to say it does seem like meta is executing very well now and maybe has a little bit of this, you know, shot for the moon with the glasses. so tell me the world from your point of view. >> yeah, it feels like also with meta, their core business is really the benefit of a.i. you see in their ad numbers they are accelerating, engaging really, really well. they definitely have momentum behind their business. they have beat our numbers automatic year long. but at the same time, you know, alphabet has been involved in machine learning more than a decade there are worries about regulatory and competition think we are underestimating the extent which a.i. helped them get where they are now so we like both.

the outperforms of meta has been so stark and the gap in valuation is starting to kind of call our attention that's why we have pivoted more to alphabet. but it's funny i thought meta would hit a wall this year. we downgraded. but the strength on operations have been so strong that it exceeded our numbers the past two quarters. >> the forward p.e. is 22. that surprise ds me. speaks to the earnings power am. they used a.i. for a business friendly purpose of optimizing ad load. i also can't help but watch mark zuckerberg and that video for the anniversary, whatever it was. this is not a person who seems to be concerned. he seems -- he is a person who seems to be kind of reveling in what would -- my read on that is in how well business is going. so maybe it's a sign of a top, but it's a sign of something. >> no, i agree with you. i covered this company about a

decade now they have had two or three major pivots in that time. we have always worried on the street, oh, you you know, they are spending too much money, the future is more uncertain every time they made a bet, they have won and i think your read is correct. he understands what he has in terms of technology power. they are investigating behind things that are working. i feel the way you do. i think we are all done doubting these big pitches. he has proven a bunch of times they know what they are doing on big opportunities. >> impressive for a kid who just started this in college. i mean, to have evolved the way that he has. we are supposed to be talking about the case for alphabet. maybe we are not doing it well is there a read through in terms of the trump administration some would say, look, musk and zuck will have that cage fight, maybe that is not so great, you know, is alphabet calling -- you know, is there an an overlay there or anything on the kind of doj front you think could benefit

alphabet or is it simply a valuation? >> no, simply the valuation. that's what we started with. we thought that the fears about competition from chatgpt or perplexity were overdone so alphabet stubbed their toe often in the past year but if you look at now in search with annual reviews, seems to be working. when people another look at alphabet they realize they are better maybe they thought. on a regulatory, i was going to say unfortunately regulatory is something that i can't factor it in now because it feels to us that it's, obviously, early days a lot of it is transactional one of the things trump said he doesn't want to break up google. he needs google, a counterbalance to china and their own a.i. ambitions perhaps the doj under his administration will be less punitive to alphabet they have the middle of a remedy cycle now to figure out what to

do about the finding that they are a monopolist that wasn't in the calculation it was simply a.i.'s problem play a better tailwind for them than people imagine. look, if we have a less regulatory pressured doj for alphabet, it's upside, right it's not a calculation, but i take it. >> where are we -- i don't know if this is exactly the right question to ask you, but in terms of media delivery and tiktok and instagram and the way that legacy media is evolving, it seems like we have gone away from the idea that tiktok is going to object banned where does that kind of lead the landscape where users are spending time and where the ad money is going >> right so i have been a media analyst, still look at media. the biggest story is it is eating into consumption of younger consumers. youtube is bigger than netflix by 25% so short form video is a huge, you know, long-term threat to

media. i think as, you know, population ages, the idea of spending an hour, two hours, watching one piece of content is antiquated it's a great question. as long as tiktok's not banned in the u.s., it's going to remain -- you know, meta, they are eating into time spent on media. it's a real negative for the traditional media companies. tlos no way around it. >> that brings us back to the bull case for alphabet are you going to be watching, what is it, tyson and jake paul on netflix tonight >> that's on saturday. >> saturday. >> yes we will be watching that it's going to be interesting because tyson is -- he is not my age yet, but getting up there, right? so we will see what happens. >> i know. that's the buzz. so i bring you the buzz and kind of another date a point. thank you for your time. >> be well. >> michael nathanson a programming note microsoft's ceo will be on money movers next tuesday, november 19 for an exclusive interview at

11:30 a.m. eastern you have time to set the dvrs. still to come, disney climbing today again after a number of firms, including bay area, bernstein and wells fargo hiked price targets. the shares on pace for their ninth straight day of gains. the first such stretch since july of 2018 they are up 20% since the end of the last month we're back after this. t's me. i. wake up, come on man! you gotta tell employers to take another look at all the benefits they're offering. everybody wants to build the best team and offering aflac can help attract and retain that top talent. you know we like that top talent. and listen, i mean you gotta listen. aflac gives employees cash to help with unexpected medical bills. it's prime time to add aflac. request a call today at aflac.com/prime

(intercom) flight deck we are go for launch! (ethan) is that the one? (janet) so much space! that open kitchen! (tanya) ...is that a walk in closet? (ethan) i want those tiles! (intercom) boosters engaged. (ethan) wait! we've got a problem! (janet) problem?! (ethan) how can you sell your house when we're stuck on a space station for months???!!! (tanya) no, no! bad timing, janet!!! (janet) but that was the one!!!! (brian) no, no, no... opendoor!! (tanya) don't open the door. (brian) opendoor gives you the flexibility to sell and buy on your timeline. (all) really? (brian) yea!!! (intercom) we have liftoff. (janet) nice! (janet) houston we have a playroom!

welcome back rest assured, i have had maybe 12 people tell me the tyson fight is tonight i got it that's where the buzz is more engagement on that than anything else happening in the markets today. here are the major averages. if you look at the nasdaq in particular, maybe that's why people want a distraction, down 2.5% today we give up post-election gains the s&p is down 1.5%, back below 6,000. similar for the dow. the russell 2000 is lagging and the ten-year at 441.

domino's pizza popped as much as 8% in extended hours after berkshire hathaway revealed a new stake, worth a half a billion dollars. the shares have turned lower, down 1%. berkshire took a small stake in pool cork worth $152 million at the end of q3. shares down 9% since the start of the year i it's been a tough story post-pandemic. berkshire shoaled 97% of the new stake -- this doesn't feel like warren buffett's company shares down 4% this was a $266 million bet in august shares surged 11% on that news they have given that back and are down today coming up, it's been a year since sam altman's ouster at openai what's changed since and what having rival elon musk in the white house could mean for the company. that's next. but i know these attack vectors.

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powering possibilities. comcast business. power's out. one year ago this week openai chief sam altman was dramatically ousted from the startup and reinstated days later. since then he has reshaped openai forming a vastly different culture, staff and mission. kate rooney with a look at the year that changed the company and its ceo.

>> so, since that dramatic weekend about a year ago, sam altman has consolidated power within openai. he has shown this prolific ability to raise money and he has become really the face of the a.i. industry, but altman is still divisive the freddie macchures within the executive ranks reveals tensions about safety in the company's competitive position people close to tman tell me his superpower as they describe it is strategy and strategic thinking that was on display last year as he got back into the ceo seat in a matter of days they remember a year ago at this time being hunkered down at altman's san francisco home trying to unwind what was essentially a coup where board members fired altman people at the company tell me that comes really the tension there comes from within openai, comes from this tension between the deep academic roots and that brushing against the massive commercial potential for in company. i am told they are in the process of becoming officially a

for profit company there is a motto there that they use internally you can disagree and leave, or disagree and commit. plenty of people we have seen have chosen the former their departures spawned a new generation of startups that could compete with openai, most recently m i.r.a. muratty leaving, and then some of the other founders decamping for rival anthropic. those that stayed are betting their careers on this. he is effective in hiring seasoned executives from big tech the last year the company today is much more of a reflection of sam altman and amid all this, altman made some enemies, namely elon musk, a co-founder of openai, some people may not know that he sued the company and is now a key advisor in the white house kelly. >> kate, thank you very much. speaking of openai, elon musk just filed an amended complaint against the company adding microsoft to the lawsuit. steve is here with more on that.

>> microsoft of course a major investor in openai elon musk added microsoft to his lawsuit against openai and co-founder and ceo sam altman last night the complaint filed last night with a slew of allegations against microsoft related to its partnership with openai and it echoes the themes from antitrust regulators around the world that they have been investigating into microsoft as well among the allegations in this suit against microsoft they say microsoft is giving openai free or cheaper pricing options for cloud computing on as you're, squeezing out competitors there, says microsoft has an exclusive deal for openai -- for early access to the latest technology, and points to a number of other things it says gives microsoft an effective control over to openai like ceo satya nadella's involvement after openai ceo sam altman was ousted a year ago and recruiting a.i. talent through so-called hires like when microsoft poached almost the entire staff of a.i. startup

inflection and brought the ceo of that company into microsoft to run artificial intelligence suit says all of these things add up and give openai and microsoft an unfair advantage in artificial intelligence development. microsoft declined to comment on these allegations. the news comes the same day our own david faber is reporting x a.i. is getting ready to raise another $6 billion round of funding at a $50 billion valuation, about a third of openai's valuation most of that money goes to nvidia chips that x a.i. needs to run. >> what does x a.i. do >> like openai created a chatbot similar to -- it's grok. >> so grok is on twitter >> yes you have to be a twitter subscriber. >> grok is on x. what is powering grok is x a.i., valued at $60 billion? >> 50. that's the valuation they are chasing according to faber, he said 5 billion comes from sovereign wealth friends in the

middle east, the other billion coming from current investors and new investors. by the way, just consider a check going to - >> by the way, i could see x a.i. being columbia river e clever if it stays up to date scraping content from twitter they wouldn't run into the problems an open web scraper would run into. >> and twitter has proprietary access to that, too. it's unclear -- most of these open models are using the entire open web as well so i would be surprised if it's only twitter data informing what x a.i. does. but you just see here with this lawsuit basically saying microsoft, you know, just because of this weird relationship where it's a nonprofit and about to go profit that they have this unfair advantage out there. and so - >> yeah. >> how much you need to raise, microsoft is in the seat. >> now trump's in the cat bird seat thank you. that's it for "the exchange. "power lunch" is up next on the other side of this break

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