in more than 60 u.s. based facilities, across 16 states, we couldn't be more proud to play our part in supporting americans who work the land and build a better tomorrow. ♪♪ nothing runs like a deere™. hi, i'm mike santoli and today we've got a special edition of "power lunch" for you. we're stuffing your stockings with stock picks. we're going shopping in tech and health care and in energy and for those last-minute small caps to get you ready for christmas and the new year. we also took viewer suggestions on social media and our traders will weigh in on the names that you want to hear about.

here to help me spread some delay cheer is tim seymour. and a "fast money" trader. before we get into the individual names let's check on the bigger picture. take a look at the dow. it is the under performer once again. this has been a rule recently, though barely below the flat line. the market has gathered strength to the s&p 500 higher by half a percent, nasdaq composite up .9%. and whether santa claus comes to wall street in the final few trading days or not, 2024 will still go down as a great year for stock. the dow up 13%, 25% for the s&p 500 and 31% and change for the nasdaq right now. so tim, this is now going to be the second straight 20% up year for the s&p. in fact, could be the second straight 25% total return. what's your read, first of all, on a little bit of the turbulence we saw in the first few weeks of december?

what's behind that and do you think we're through it? >> it's fascinating because it's been arguably the best -- one of the best 24-month period on a rolling basis going back to that october '22 cpi. if you think about what has roiled markets over the last couple weeks it's been a combination of higher interest rates, of a fed which is your biggest factor really of all those tail risks out there, maybe not a tail risk if it's the fed, unless they do something really unexpected, i just think you're wrestling with expectations that were extraordinary in terms of where easing was going to be. you've had a move in some of the megacap tech stocks which have utperformed the market broadening many times over the last six months. i think it's a combination of higher interest rates. the dollar is to be reckoned with. after you had an election you priced in policy expectations but the reality policy is still yet to unfold. >> it absolutely is. it's interesting you say hat

because the first half of the year was about the seven stocks everyone knew the names of. after that you got a broadening move and then the nasdaq 100 type stocks. >> look at relative performance of the s&p to -- or the nasdaq to the s&p and semiconductors to the s&p. semi has peaked to the s&p after a little bit of a kind of a big top in june, but i think the dynamic here is the reassertion of the triple qs or the nasdaq 100 against the s&p since thanksgiving. it's been almost a 6% out performance. semis have meandered a bit. it's great for the overall headline index market because i think they will lead but it tells you that market broadening some of the factors that i think are headwinds in terms of higher rates and what not are things that i'm not sure investors are ready to adopt right now. >> sure. in fact the upside contributors, the biggest on the day, nvidia, broadcom, tesla, eli lilly, year-to-date winners. we're going to get into more deeply into a lot of that actually. let's turn to our first stocking

stuffer segment for the hour. this is for the best picks in technology. some of the big names like alphabet and apple up over 30% this year, but can they continue their climb into 2025? joining us now for more is laura martin, senior internet and media analyst. great to have you. thank you for coming on. >> nice to see you. >> i think first just to start pretty broad here in terms of your coverage area, it does span large and small, but do you feel as if you can actually wish for yet another year when the largest, most obvious stocks in tech manage to carry the load or is it going to be some reversion from that this coming year? >> well, some of it is the political environment. we have a new head of the doj and with polarized government i think that new doj had is going to jettison a lot of the outstanding litigation and the big tech that benefits the most from that is alphabet. so we think we're going to get multiple expansion in alphabet as sort of like the doj's

suggestion to have them spin off from. i think the new doj will walk away from a lot of that. i see multiple expansion for alphabet. i also like alphabet and amazon because of all of the back office work they're doing in driving generative ai investment which is really helping their cost structures. we're getting costs up single digits with revenue up double-digits which is making their free cash flow and, therefore, capital efficiency explode over -- to the upside with amazon and alphabet both. >> alphabet, you're making the case there has been an unwarranted discount on alphabet. of course it did get pretty cheap relative to the market and relative to its own history but that was almost all about regulation or somewhat about, you know, whether, in fact, alphabet was well positioned in terms of whatever goes on in ai. >> you saw they introduced the chip, which technically is a

generative ai chip that could actually break bitcoin and blockchain. i think they are really sort of moving ahead in ai. they should have been ahead the whole time, but when openai got to chatgpt and introduced that product first it woke the sleeping dragon and now i think alphabet is on the case of generative ai and they have a huge advantage because they have first party data from youtube which is the number one streaming asset, 50% more viewing than netflix. they have search which is i think getting replaced by generative ai, but they're doing a lot of the replacing. when you do google searches about 50% come back with an answer that basically replicates chatgpt which encourages you not to go to chatgpt for the answer. call it cannibalizing themselves at some level, which is better than losing it to another site. i think they're doing the right things now, even though they had to catch up. >> yeah. it's interesting, in the sense that whoever owns the data now might even be in a more

privileged position. you're hearing about openai. the next generation kind of running out of things to train their models on on some level. amazon, though, quickly might be in a similar spot, but what's in there in the story into the coming year that maybe is not already known? it feels like one that got embraced by the street this year. >> right. and the big thing that i think if people miss amazon, what they're missing is we're moving from an eexercise -- eexercise business which has 1% margins to a company taking capital and reallocated away from that business, twice the size of apple and alphabet and it's going to grow twice as fast as apple. like that's amazing. and then also, what it's growing in is more profitable. we get margins reported out for aws 30%. the e-commerce business was 1%. we also get margins in advertising, 60% margins. you're watching their margin

expansion, which is also ree cash flow, and its multiple doesn't reflect -- people think of it as an e-commerce company. it's moving away from regulatory risk by going into shipping and going into the like generative ai layer of aws. moving away from consumer facing businesses which i think lowers its regulatory risk long term. >> it's tim. thanks for joining us. that third quarter profitability inflection at amazon is part of what you're talking about and the free cash flow generation. let's jump to apple. the bottom line here this is a story where i think most people probably would say we have not priced in ai or apple intelligence. where are you really on the multiple? >> so i think it's too expensive here. we have a company that grew like single digits, 2% at the top line, negative 1% at the eps line. they're late to apple intelligence. they have a one-year product introduction cycle which means the earliest we can get an iphone replacement cycle is next

september. generative ai feels like it's changing the world every month, every two months, and apple isn't keeping up with that kind of pace. also it's not building a backbone that other things are going to be built on and pay a tax or a toll to the underlying large language model which will happen if amazon and alphabet, so i -- we're waiting for the iphone replacement cycle. apple intelligence has been disappointing. let's see if they do a better job this september. meanwhile, let's be in other stocks. >> yeah. kind of known for sort of december melt up in apple whether it needs it or not. we'll see how that goes in the new year. did want to get you quickly on trade desk. somewhat smaller play. kind of an interesting spot in digital advertising. >> yeah. so i think these -- back to data, data is becoming more valuable and the trade desk is the largest winner within advertising technology in the open internet. and they're going to grow at 25% and they have 40% margins, so

nice software margins. and they are sort of the back bone for the ad agencies so that's our like dark horse hidden and growing a lot faster than the big guys because it's a lot smaller. >> $60 billion market cap and the advertisers, they need to find the eyeballs and such. they're going to help them. thanks very much. enjoy the holidays. laura martin. ahead on the show, we'll continue our special stocking stuffer edition "wencofpor luh" after the break. we'll dive into biotech and pharma. we'll be right back. we ready? mhm, hehe. i need to get me a new phone.

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>> thanks for having me. >> let's begin with lilly. it's rallying again today. obviously, it's off its highs. the valuation is moderated. but what's the story and has it changed at all? >> the story a lot last week we had novo data disappointed most. that was novo's answer to zepbound. that's kind of not part of the picture now. my focus turns to 4 q where expectations are still pretty high. i think for the full-year consensus or guidance is really important. next year consensus is $28 billion for all of lilly's zepbound and mounjaro, about 26, that's going to set the tone. we're focused on that, and i think that will be -- >> the adverse surprise for novo, is there any read through at all, either pro or con for lilly or the area? i wonder how fast the challengers might ho>> lilly's

the best products. toppling that will be challenging. novo had lofty expectations and failed to meet them. >> talk about biogen. falls into the kind of cheap, maybe for a reason, bucket we were very excited about he can mav which was approved in 2023. it wasn't a cure but it was a way to help patients. it seems like they're kind of stuck in a rut. my view it goes back under invested in the pipeline for a long time. they prioritize share buybacks over buying assets and we're seeing that with the pipeline. investors don't have a line of sight. >> what droves growth at the end of the day. >> m&a has to rise to the front. >> their balance sheet is strained so they can't go out and buy a $30 billion company. probably in the 10 to $15 billion range and that would still be a stretch. >> vertext a big disappointment last week. what's your take?

>> we thought that was a buying opportunity and late last friday they got an approval for the next generation cf product. in january, we have approval of their acute medication for pain, likely going to get approved given the opioid crisis that launch should be great, and then it's off to the races more with cf. they're going to get incremental patients with the new drug, better margin profile and pricing. >> let's talk about sentiment in the investor community. we've gone from this place where lilly and novo were a two-horse race, who might be the next take out, a viking. lilly, they are the g.o.a.t. but where are investors? lilly sometimes is just a function of valuation and as we look across broader health care but pharma specifically there's been an argument that some of the legacy, you know, whether it's a bristol or a pfizer or a j&j, players that might be more attractive as we look forward and just where the catalyst

might be? >> a few things. the obesity trade still works in 2025 but lilly and novo have to execute perfectly. i think any faltering in 4 q will be a real problem. when it comes to the legacy names, pfizer, bristol, you know, i think pfizer, got overshadowed. the guide was healthy and they're starting to right the ship a bit. starboard came in to shape things up. tried to. it takes a long time to right the ship. bristol is interesting. i'm not at an out perform but watching the launch of their new schizophrenia drugs. i think there are value names in pharma. i'm sticking with lilly, but it's not my top pick in 2025. >> how do you set assumptions or expecttations for policy in terms of who is running hhs and on down. >> have we overreacted?

the market made a decision this was gospel. >> the rfk thing when announced the market freaked out. probably rightfully so. the whole -- there's a lot of uncertainty. the market doesn't like uncertainty. i like the fda pick mark macri. i think he is he's not -- he's not like a scott gottlieb but not totally on the other deep end a little crazy. i'm comfortable with that. with -- >> and by deep end crazy somebody who is skeptical, various types of medicine. >> blow it up unfortunately. we don't want that. that's not what we want. when it comes to rfk, seems to be a lot of talk. remember, whether you get into a big organization like hhs, making big changes ta is a complicated organization. it's very technical. to make big changes is very challenging. >> yeah. so the benefit of it being complex and difficult to move is maybe not much change -- >> overdone. >> i guess that would be the case. on the other hand if you're going to have a more forgiving

m&a environment -- >> that's what i love. that would be great. we talked about biogen having to buy. i'm sure lilly will have to buy. even novo. a lot of m&a that needs to happen. i think about rates. lower rates could be good for small and mid cap biotech. the wild west of investing. lower rates are good for the sector overall. >> we'll see if we're going to get them. >> maybe. >> that's fair. >> not so far. >> very fair. >> great to talk to you. thanks so much. >> thanks for having me. >> still to come we'll explore one stock more like a lump of coal this year. boeing down 30%. we'll trade that name in market navigator next.

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welcome back. as tim likes to say a lot of money can be made when things improve from terrible to bad, to let's take a look at boeing down by more than 30% this year although the stock has improved relatively recently. our next guest thinks it's prime for a comeback improving technical momentum and renewed operational optimism. joining us tony zhang, chief strategist at options play. what are you seeing in the charts and how would you play it? >> yeah.

first thing you see in the charts is the fact that boeing, after the past three or four months have really struggled to kind of form that bottom. it really has started to show some improvement in technicals. we broke out above the 170 level, a key resistance level it's been struggling to get above. over the last couple weeks we actually got past the 200 day moving average. what's interesting is on wednesday's volatility you saw boeing didn't move at all. this really speaks to the strength we started to see here from investors for this particular stock. if you look at just the business, you know the ceo's gotten past some really interesting milestones, gotten past a major labor dispute, they've got somebody funding now and hands down the ceo's getting their hands dirty and working towards improving the backlogs with 737 and 787 programs continuing to get higher deliveries month after month and that's kind of what we're looking for and on to the road for recovery for boeing.

>> how are you thinking about just setting targets or exactly how much of it many years worth of under performance we might expect to get back soon? >> yeah. it's hard to say. you know, that's really kind of the speculative nature of this stock, but this is really kind of where i think this is very early days and i think for a lot of investors the risk-reward is actually far more favorable right now, but there's no doubt that this is still fairly risky and very early in the recovery game as to whether or not they can continue to show some momentum that they've shown in the last couple months. >> tony it's tim. going back to the charts and where you see both levels you think the stock can rally from, it had a nice rally in the last few weeks off a horrendous 2024, but the dynamic for me is this is a cash flow story. in other words negative cash flow 10 to $12 billion has the potential to be possibly 10 to $12 billion by '26. where do you think the stock, you know, begins to incorporate some of those moves? i mean really even levels on the

stock you think investors should watch? >> the 200-day moving average is the most important one right now. we just cleared above that level last week. we really need to see that hold. we want to see the 200-day moving average continue to curl up and for the stock to continue to hold those levels. that would be the most important one i think for investors in the long run to keep an eye out on. >> i've been interested in kind of the sentiment swings on boeing. when they first had their issues, management production, obviously, 737 max, you saw the street wanting to defend it and then it kind of capitulated and more or less turned negative. what are you seeing in terms of positioning and expectations embedded in the market and options activity and things like that? >> yeah. so we're starting to see some bullish activity here for boeing in the options market. but i still, like i said, still very early days. we're not seeing a ton of volume right now, but i think this is an opportunity for investors early on to try to get into what could be a long-term ecovery

for boeing. you know, right now the way that i think we should play this utilizing options is still take advantage of the fact that implied volatility on boeing options are still quite expensive and you can take advantage of that by selling options. i'm going out to the january expiration and looking at selling the 170 puts. today you can collect about $4.30 selling the puts. this obligates you to buy the stock if the stock is below 1.70 below the 200-day moving average buying boeing at the breakout level. prior to the breakout level we're referring to that's kind of where i feel most comfortable buying this. right now we're trading at 1.4 times sales. that's by far the cheapest of any aerospace company at the moment here in the s&p 500 and that's what i like is the low valuation, you know, we're starting to pay attention to this from a technical perspective. the risks are there, and i want to reduce my risks selling puts here. >> tony, appreciate the time today.

thank you. >> thank you. coming p the key to a good stocking stuffer. keep it small. we'll focus on small caps when this special edition of "power lunch" returns.

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welcome back to "power lunch." i'm seema moody with your cnbc news update. france unveiling its new government today which will be tasked with overseeing the passage of the 2025 budget. prime minister naming former ministers and senior civil servants to the cabinet after the previous government was ousted over a budget fight. france is facing pressure to reduce its large desk. whooping cough cases at a ten-year high according to data from the cdc. as of mid-december 32,000 cases have been recorded and there were just over 5100 cases. health experts say cases of the upper respiratory infection are rising as a result of waning vaccine protection, lower rates and improved context. new york city's congestion pricing plan overcame a legal challenge today. a new york judge denied attempts

from four separate lawsuits to stop the pricing from taking effect on january 5th. under the plan most drivers will be charged $9 to enter manhattan below 60th street. >> thank you very much. let's take a look at our next stocking stuffer. small caps. the russell 2000 under performing the major averages again this year, but with 2,000 stocks in the catalog there has to be a few good values in there somewhere. let's ask steven, portfolio manager at federated. thanks for coming on. let's talk just i think big picture. you know, you specialize in small caps. it's kind of like they keep pulling the football away. but do you see the makings of any kind of a comeback or still in this mega cap? >> i'm going to use a quote from mark twain who once said, i didn't have time to write a short letter, so i wrote a long letter and i think that same thought process is going on in investing where investors don't

have time to do the work on these small cap idiosyncratic stocks, so they're -- it's easier to focus on these large companies that have the scale innovation and margins that we have never seen before historically. if you look over 100 years. small cap companies have outperformed because small caps are where the innovation happens. over the last five and ten years, that innovation formula is upside down as the largest companies are generating the most innovation, the most attention, the most liquidity. there's been outflows out of small caps all year. it's just easier to kick the football if it's a large cap company. >> innovation and inefficiency is the theory over time. talk about some of the individual names that you have zeroed in on. lower holdings for one, talk about this. >> you just had a previous guest talking about boeing and all due respect to boeing my one thesis with aerospace is that we will continue to fly planes. air travel will continue to go

up. whether it's a brand new boeing airplane and they've just restarted the 737 max production, or it is an older plane that needs to be refurbished, either scenario, loar group wins. an ipo in 2024. this is probably the best small cap company that i have seen in a long, long time where they have a combination of a winning management team, extremely high margins, and a pun end intended runway for growth over the long term. they have proprietary products. small plugs, washers, valve, seat belts. and they supply those to the aerospace companies. now, whether it's a new plane or a used plane you're going to need those parts. they charge a my margin. a million parts in an airplane that it takes. the largest supplier is transdigm. they have only a 5% market share. loar group is one tenth of the size. if you take a deep breath and say what do i want to own for the next ten years this is something to put in the stock

and win over the long term. >> all right. relatively young stock but hasn't had quite a run before a pullback, sport radar is one i admit to not ing aware of. >> come on. >> i probably see the product all the time. >> this is a pick and shovels way to play the proliferation of online gambling, and so they own the data. they own the data from major league baseball, the nhl, the nba, and they sell that data to draftkings. if you believe there will be more sports betting in the future than today, sport radar is a profitable way to play it. they came public at the peak of the small caps in 2021. the stock is down about 40% from that ipo price. a lot of people have lost money in this company. but if you forget the ipo price and look what they have done over the last three years, they have slowly grown profitability 30% a year and they have twice the ebitda today than when they came public with a stock that is

down 40%. that is a microcosm of what's going on in the small cap market. nobody is paying attention to these companies that are doing what they said they're going to do. they've just had a tough print in 2021 when there was this little bit of mania. >> by own the data i assume you mean they have the rights to distribute it? >> correct. they're the brains behind the data that creates the sports books for draftkings. look i'm a long-term bull on housing i think there's an under supply and i think interest rates are going to slowly down and mortgage rates down in '25 and '26. they are a distributor of wall board sounds boring but when you realize there's no such thing as a new wall board plant. if you're a contributor higher pricesing is a good thing. sitting here at 11 times earnings and easy to come up with a double in their profit blgts over the next few years. >> looks like been a depressed

multiple on the big concerns. steven, thanks very much. appreciate the time. >> merry christmas. >> the small cap trade idea people have tried it -- >> those are fascinating picks by steven. i can't opine on wall board. the bottom line, i've seen under performance in small caps that i think is a function of concern around higher for longer. the move in the long end, we know why small caps certainly have had a tough run. some of this is fresh run. it's 6% under performance in the last 30 sessions or so to the market because i think the market first of all, a lot of investors, i think, and i think it's a fair question, why do i need to focus on small caps when, in fact, there is megacap growth and a place. it's some part of the portfolio right now, but to me, this is a place where i think some of the challenges and the out performance of the market the broadening of the market so exciting, is something that if anything that's come under question. >> a case to be made that you need essentially a reset of the entire cycle, bear market, things get cleared out and small caps can lead off. >> maybe the dollar strength is

something generally and, obviously, a lot of the u.s. focus in terms of industries are part of the new administration agenda. but for now, if i'm an investor again i'm not sure i even need to invest in small caps. don't attack me on twitter. >> 7% of total market cap. thanks. coming up, the energy space, having a rough end to the year down 13% in a month. we'll take a look at the names to watch across the group in the new year. "power lunch" will be right back. business. it's not a nine-to-five proposition. it's all day and into the night. it's all the things that keep this world turning. it's the go-tos that keep us going.

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welcome back to our stocking stuffer special. let's focus on energy now which is one of only two s&p sectors lower on the year. materials being the other. pippa stevens joins us now to break down the different parts

of the energy sector. oil and gas. >> energy stocks are the second to worst sector so far this year and looking into 2025 there is a lot of uncertainty around oil's price direction thanks to possible tariffs and sanctions and nonopec supply group meaning there could be a shift from oil to gas exposed companies and the outlook gets better thanks to lng growth and generative ai. newly created expand energy from the merger of southwestern and chesapeake is the largest gas driller in the u.s. and then, of course, you have to move the gas just as important and kinder morgan is one name to watch because it is the largest pipeline operator. it is really hard to build new pipelines and infrastructure that's already in the ground is definitely seen as a premium advantage. >> yeah. i think if you look at the places that have outperformed in a difficult year for energy you're seeing it in some of the places where there are renewable dynamics but really it's a case of people looking to who has the technology and who's really

succeeding. >> this is a year a lot of folks discover nuclear power. how does it play into an investable idea? >> it was the year of nuclear power and next year could see more announcements between the industry and big tech, although there will need to be progress on getting some of these small modular reactor designs off the ground. independent power producer vis tra has been a beneficiary since he own the second largest nuclear competitive fleet and could sign a deal with a hyper scalar. it is the second best stock in the s&p and after tripling it might have got ahead of itself. cameco, the one stop nuclear company since they've expanded beyond mining to other parts of the nuclear fuel supply chain and own 49% of westinghouse meaning they have exposure to the ap 1,000 commercial scale reactor. >> you did an excellent deep dive a couple weeks ago and the story around nuclear to me is about a structural deficit

that's going on and the case where u.s. is almost one of the most aggressive countries suddenly in terms of exploiting. the question for cameco is what do you want to pay for this company because there's extraordinary growth, potential, but you priced in a major, major multiple here. it is more about the opportunity. i've been investing in nuclear probably for 20 years with a lot of volatility. i think that's critical for investors to understand. this isn't a straight move higher. there are a lot of structural issues to work out. >> you did not rediscover it this year. >> i did not. >> it's time to take a look. >> i do -- i have no basis for this but wonder if the massive demand forecasts that are embedded in a lot of these when these nuclear projects start to pay off are going to come to pass. we're extrapolating the ai demand curve. we'll see. that's part of the risk. >> the spot market has been part of the fun here. a massive move in the spot market going into '24 that's struggled for the last 12

months. i think there are a lot of utilities -- >> ai is only one of the challenge. electrification and restoring. one part of the story. >> another part of the story. renewables, green energy. >> yeah. it's been a rough year for clean energy stocks has higher rates take a toll and then president-elect trump has injected a lot of uncertainty around the future of the inflation reduction act. now a total repeal would be tough given how much money has gone to red districts but projects could be delayed. first solar has held up better than the rest of the space and they have a moat of sorts given they're the opening meaningful package manufacturer in the u.s. which is especially important in light of tariffs. a name that designed and installs renewable projects including transmission lines and it is a way to bet on the clean energy system without choosing one vertical or one technology. >> yeah. i look at renewables and again, i get back to like a next era and i think there's been -- it's been a volatile trade this year but they are one of the leaders and it's a story of efficiency

and technology. you know, i think actually it's probably the dirty stuff that will have a better year in '25 because you look at a chevron under performed massive will i and yet their break evens to pay that dividend and some of the dynamics around the big inti gratespace and i think people will focus on that. >> everybody's favorite counterintuitive policy driven trade is clean energy. it outperformed under trump. >> i think people think those subsidies are necessary when the industry can stand on its own two feet. when you've had subsidies for a long time it's seen as integral to the story going forward. >> for sure. thank you. >> thanks. all right. still to come time for a gift exchange. we gave you some names and now 'sit your turn. we'll run through viewer stock picks after the break. we're back in two. we're harnessing breakthrough innovations to increase production in the u.s. gulf of mexico. our latest deepwater development, anchor, produces

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. welcome back. time to wrap up our stocking stuffer special. we've got some gifts from the viewers to help do that. we asked on social media which names you wanted us to hit. three stock stood out among what you asked for. nvidia, lululemon and microstrategy. tim is with us. >> snugling with you by the fire. >> cozy fire on a cold day here. all right. along with leeto advisors gina sanchez to give you their expert takes on these popular flames. good afternoon. let's start with you on nvidia. i tell you, it's amazing both that it's up so much this year and all the gains happened in the first half. >> yeah. it is amazing, and even more amazing that despite how much it's been up, not just this past year but over the last ten years, it is still expected to go up next year. if you look at what they're rolling out, they're over 50

times p/e actually to be easily justified if you look at the blackwell chip and the potential that has. it is twice as expensive as the hopper, but depending on who you ask it's anywhere from 15 to 30 times faster for ai testing and that's a big deal. microsoft has already signed up to be the largest buyer along with all the other top players. >> it seems like they're going to have plenty of demand for it. tim, the question is, has the market priced it? you see things like broadcom ripping as almost like the next wave of this trade. >> but i think first of all, i think nvidia the 300 server chip it will be a catalyst and very important to the stock. i think for investors, this may be the year of amd coming up. in other words i think down 20% on the year not the reason to buy a stock but it is on a relative basis to itself trading roughly 30 times forward. this is a stock in the space and what you're getting i like amd here. >> and semis as a group have

struggled and kind of lost their leadership profile. see if that changes after the first of the year. all right. gina, next name lululemon. this was, you know, a stock that did have its struggles, but has actually then had a bit of a renaissance. >> yeah. it is definitely clawing its way out of unquestionable a terrible year not only in its own performance but relative to the s&p 500. it has just really, really been a laggard. but if you look at the forecast for next year they're expected to be somewhat soft. i've seen numbers around 7% eps growth for 2025. feels soft. if you look at what you're paying for lululemon and the commitment that they're making to continue to innovate and sort of get that freshness and newness back into the brand line, i do think that this is actually a very attractively priced bet right now. >> it's an interesting one, because, you know, it definitely is trading less expensive than it has for most of its history. the issue, is it a new dynamic

here with competition, with resistance to full price and things like that. >> the competitive landscape is brutal. i think it's partly that. i think it's also, you know, lulu goes into this period of call it slower growth and a lot of competition at margin levels, gross margins and overall that i think are going to be tough to maintain, so again in a period of difficulty for the company's core business i think the margin profile is tough here. it's been a good snapback rally. i'm not sure what you do with it here. >> all right. third viewer pick and it is no surprise that the crowd loves taut this one, microstrategy. what do you think of this? it's a leveraged bitcoin trade by design? >> that is unquestionably a leveraged bitcoin trade. if you think about the volatility that comes with bitcoin, put leverage on that, and that's what you're getting. i do think that while, you know, you could argue that the turnover at the helm of the sec will be beneficial and that

bitcoin has reached a number of milestones, i do think that the fundamentals are a bit unhinged here. >> i mean, tim, not only do you have bitcoin doing what its done, microstrategy explicitly saying we're raising money in the capital markets to buy more as much as we can at whatever price it's trading for and then you have the stock itself trading at a premium to the bitcoin holdings of microstrategy and then you've got double leveraged etfs on bitcoin. so in other words, there's a fever in this stock. how would you -- >> hard to question michael's constitution here. he's made a bold call. i think the options market and when it really builds around what's going on in spot bitcoin is going to be an issue for this company. right now what's your call on bitcoin. it's a function of dynamics around the macro, what's happening with the deficit. people out there investing in bitcoin, it's not necessarily because it's just digital gold and there is, obviously, a scarcity dynamic. look, my view on bitcoin in 2025 is really a function of what the

market is going to do. we've had almost perfect liquidity conditions and an election catalyst for bitcoin. i think it's going to be tougher in '25. >> yeah. it's interesting how many things lined up and of course it really trades much more like the nasdaq than gold. >> yeah. that's okay. >> gina, we gave the viewers a take on their favorite tickers. let's talk about one of yours, microsoft. >> i'm a big fan of microsoft. this is a stock that we not only own in our portfolio, but i own personally and have owned for a long time. i think that if you look at what microsoft has been dealing with over the last year, it's really been, you know, meeting tremendous demand. that's been actually the biggest moderator of their growth and so they're making huge investments. they're buying -- they bought twice as many hopper chips from nvidia and signed up to be the largest buyer of the blackwell chip. if you harken back to the conversation you had with pippa

about nuclear, you know, microsoft made a deal to restart three mile island and buy all of its energy capacity. >> sure. i mean, microsoft's actually been kind of sideways for a while. it's been conspicuous. >> it peaked with the semis. that was the story this year. your issue, one issue with microsoft, is not really a function of where they are in three of the most important verticals in tech, it's about the valuation. so as we look to an environment if you think megacap tech is going to outperform microsoft is going to be there but within that group it's not my top pick. >> what is your top pick at the moment? >> as we talked about it with boeing, talked about this, i think part of picking a stock for an upcoming year if that's what this game is, it's called investing, it's nike because this is a stock that's done almost nothing for two years after peaking really at the end of '21. elliott hill finally, i think, on this recent round of numbers i i woonts call it the kitchen

sink but the change in the c-suite the ability to do that, there's nothing exciting on the next three to six months in terms of innovation and i think an inflection of margins. i think the guide on the 3q minus negative low double-digits is in the price of the stock. that's the great news for investors here. this is still the global leader in the space and a company that relative to itself i think is now trading at realistic levels and i think they are getting back to what they do well. there's no question to me this was a reset. this is what we needed to hear from the management team. they have not said we're going to do a thousand great things even though i think his tone was good last week. i think it's a story that it's going to be a positive '25. >> all right. yeah. there's no doubt that there was a give trade in nike and now you have to rebuild the faith in it. and with that, gina, thank you very much for the time today. tim, did want to just button up what's going on with the markets. you did finally see what's expected to be the upward drift of this final few days of the year, maybe kick in this morning. >> well, let's see. it's nice to see the out

performance of semis today. if you're someone looking for the indices to go higher semis will do it. such a ride for megacap tech stocks since thanksgiving and if you look also since we had that august 5th bottom, the move across the space, megacap tech has been extraordinary. >> it has. home builders struggling with semis. thank you for watching "power lunch." thanks to tim for an extremely fun hour. "closing bell" starts right now. 77. thanks so much. i'm scott wapner. this make or break begins with the rally. we'll ask our experts the question over the final stretch. in the meantime your scorecard with 60 minutes to go in regulation. an uneven day for stocks. the market still focused on the path for interest rates. they are a touch higher today, thus we're mixed. nasdaq leading, nvidia, alphabet, tesla, they're green today.