other types of broadcast entertainment. right now, there's sort of a bar that's attached to the venue so you can get concessions. that's one way they make money, he said. they're on their way to profitability. he wouldn't really get into the specifics of how much these venues cost, or exactly the finances of his company. >> it's a. >> startup, but they have raised $300 million. >> appreciate it, alex sherman. >> see you tomorrow. >> closing bell starts right now. >> all right. >> guys, thanks. >> so much. welcome to closing bell. scott wapner live from post nine right here at the new york stock exchange. this make or break hour begins with the alphabet aftermath. what it means for how the mega-caps will trade from here. a day when there is mixed action. and we're going to get to that in just a bit. in the meantime, let's show you the scorecard here with 60 to go in regulation green but somewhat muted. nasdaq in fact dipping into the red today. strength in financials. there is strength in tech despite alphabet. utilities as well. weakness in energy discretionary income services. we'll get to that. yields mostly lower. there

are some standout moves we want to tell you about. uber shares are sinking after its outlook disappointed the street. and mattel is higher on a strong forecast. and some price target increases as well. it does take us to our talk of the tape today a tale of three techs alphabet and apple pressured nvidia surging and that is helping the nasdaq today. we have a report on all three of those steve kovac on apple's latest china headache. deirdre bosa on alphabet's post earnings ugliness. and christina partsinevelos on nvidia's strong session as amd pulls back today. steve, we'll begin with you. this headache that just won't go away. >> did you just downgrade it from earlier from a migraine. scott it was a migraine on halftime report. anyway, here's what's going on with the shares here. today we see the shares down about half a percent. now this is from a bloomberg report overnight saying that china app store is being investigated. this is over those 30% fees that apple charges. this is the same kind of investigations and lawsuits and so forth. we've seen all around the world, including here in the united

states and in europe. and what's at risk here is, of course, the app store revenue that plays into the services and overall margins that we've seen at apple that continue to grow. all of those things have been picking up the slack for sluggish iphone sales, especially in china. that is going to be a big worry here. bank of america had a good note out on this this morning, saying china makes up about 24% of app store sales. meaning if this does go into effect and those fees go away that apple is allowed to charge, that could hit apple's eps from a range of 13 to $0.26 a share. and add all of this to the pressure from chinese competitors that huawei, xiaomi and the like. and plus, no apple intelligence in the country, which tim cook last week told us was a reason china sales were down. and by the way, this is just the continued decline in the china business, down 11% in the december quarter that just passed. it's a pretty ugly picture over there in china for apple. scott. >> if you if you want to stay with the headache theme, we can. i didn't mean to veer you off.

>> of that. yeah you. >> tricked me. but this does show you, however, that this headache, whatever you want to characterize it as, is not going away anytime soon. >> yeah, and that's right. and part of this is just this renewed competition. this is what i'm looking at more. you don't hear apple talk too much about what the competition is like. they've said, yes, it is very competitive and increasingly competitive. but we're just seeing this huge resurgence scott with huawei, with xiaomi but especially huawei, which was out of the game for a couple of years to apple's benefit during the pandemic when huawei was out of the game, you got a nice little lift in apple sales because of that. and now with huawei playing in there again, people are looking over to these chinese homegrown brands to start buying again. our eunice yoon has done great reporting on this out in china, showing these huawei stores that are literally built across the street or across the hall in malls, from apple stores, and attracting just as many customers, if not more. and they're taking away market share from apple. and

that also puts pressure on the services business, because keep in mind, when people aren't using apple devices, they're not using apple services. and this is another hit to them. what we're learning today about this investigation will put more pressure on their services if it does play out the way we've seen it play out in europe and elsewhere. scott. >> all right, steve. thank you. steve kovach now to deirdre bosa with more on alphabet. and oh by the way uber which doesn't get talked about as much today. but it's an ugly story as well. but why don't you start with alphabet and the hangover from this earnings report. >> both ugly stories. let me tackle google first. really capex was focused especially as a percentage of annual revenue. and that's what's giving investors pause here. $75 billion in 2025 is what it announced. that would amount to nearly 20% of projected total revenue in 2025. that is a significant step up from the last few years. and as the cfo said, going to hit the pnl now, combined with its first revenue miss in two years and cloud that didn't live up to expectations. that's why you're seeing shares down some 8% today. the good

news, though, is that google's bread and butter search advertising that's holding up well amid this generative ai shift, which was really this kind of existential crisis for the company executives on the earnings call said that i overuse is driving more volume and more ad dollars. let me get to uber now. it's down a similar amount today. the issue here was guidance, which doesn't help uber out in this broader bull bear debate over the rise of robotaxis and whether it will threaten its business. on cnbc this morning, ceo dara khosrowshahi said that avs represent both uncertainty and a huge opportunity. uber's advantage, he said, is its experience with fleets at scale. and scott, that is going to be put to the test this year because waymo is expanding. we're expecting things from tesla as well. can uber be the fleet? will they do it alone? will they partner with others? there's indication of all of that. >> all right dave thank you. that's deirdre bosa. now to christina partsinevelos for those moves in nvidia and amd. and i guess when alphabet says they're going to spend as many

billions as they're going to spend, you see nvidia shares doing what they're doing today. >> yes. and even yesterday when the news came out that $75 billion number you saw nvidia pop, amd didn't. why amd's data center numbers just weren't up to snuff. things looking bumpy ahead to amd telling us q1 revenues will drop 7% sequentially as data center clients and embedded are all heading south. only their gaming business is really showing any sign of life for q1. making matters worse, amd won't give a specific forecast for their ai chip sales in 2025 gpus, and that's a tough pill for some investors to swallow, since they can't stack it up against nvidia numbers, especially to your point, when cloud giants are just throwing billions of dollars at data center upgrades. right now, amd is trying to play catch up by pushing up their next gpu, the mi 350 to june this year, so that's a good thing. but morgan stanley says their big technological leap isn't coming until the mi 400. that's the next iteration of the gpu hits in mid 2026. so that's a long way out, and it's given

even more room to nvidia to run with that ai crown. speaking of nvidia, you mentioned it shares up on that $75 billion promise from alphabet. separately, digitimes is reporting that advanced packaging capacity at taiwan semi is improving, and that should help ease any supply chain issues with nvidia's chips. and lastly, supermicro says they are in full production of nvidia blackwell racks. that's gpu cpus. liquid cooling, another way to ease nvidia supply constraints. so those are all just catalysts as to why you're seeing the stock up 4.5% and supermicro up what, over 9% two. >> yeah. what's the catalyst today for broadcom. up 5.5%. or is it just part of what's happening with these other stocks. >> it has to do with the custom chips. and even yesterday amd ceo talked about the asic market. and she gave credence she said that it's a it's a market that's not going away and that they're playing in it as well. so i would assume it's just the conversation overall with the hyperscalers and amd saying that asics are important. >> all right. thank you for that. kristina partsinevelos. let's bring in our panel now, courtney garcia of payne capital management, sandra cho of point

wolf capital management, it's great to have you both with us. courtney is a cnbc contributor. but sandra, i want to begin with you, because what stands out to me today from your notes is the fact that you say be underweight tech, which not too many people have come on of late and said that's the positioning that will work best. why is that your view? >> well. >> i mean you see it right now, right? you see the volatility. and right now we are you know, we're not negative tech by any means, but big tech. and i think i should specify that. so big tech. >> has had a huge. >> run up. and as we see you know in google and alphabet and uber we see a lot of, you know, potential volatility and headwinds a little bit, at least for the short term. so right now that's our positioning. >> yeah. court does that match with with you or. no. >> yeah. and i. >> do agree with that. >> i mean really. >> we've been talking. >> about broadening. >> that broadening. >> out your positions. it's not that we saw any of these big. drops happening in tech necessarily. just you've already had. >> these huge. >> run ups. and i think a lot of

the kind of obvious money has already gone into ai. and you've seen a. >> lot of those shares. >> have been driven up in. >> the multiples are really getting stronger. >> i think the question is, can. >> that. >> continue to outperform it the way it has been outperforming? and we would argue probably not. >> i think. >> the better way to. >> play ai is with the other 493. >> stocks in the s&p 500. >> or looking at your small and your mid-cap companies, where they're going to get more accessibility to ai, probably. >> at a lower cost. >> it's going to increase efficiency. and i think that's the better way to play this over the long run. you're seeing the markets are doing well despite those companies not performing well. >> i mean, the argument against this, sandra, of course, is that those stocks value and otherwise are cheaper for a reason. their multiples are more favorable to people because for a reason, i mean, if you're if we're worried about an environment where we're going to have, you know, tariffs here and tariffs there or threats here and threats there, and we may get a pickup in inflation once again, how are these other trades going to work? i just don't understand that. >> sure. well i'm not

necessarily. >> just talking about value. for example i think it's great to have a dividend. and i think that, you know, bolsters up the potential future valuation. >> but we do see a. >> rotation, right? we even see it this year. and i'm not saying that, you know, big tech is going away or it's not a good long term investment. i'm just saying for the short term, there are other areas that we really do like a bit better. so we're not just pulling out of big tech, but we like, you know, for example, healthcare materials, industrials. we see how not only, you know, not just that there was this broadening out of the other 493 other stocks last year. >> but we see. the increase. >> in earnings, that. depth of earnings really, you know, going up even more in. those 493 stocks. >> and we. >> see it this year i mean. >> look at materials. look at industrials. you know you look at constellation energy was the number one performing stock. >> in january. >> and you look. >> at. utilities which. >> are going to be powering. i so once again you know speaking

to that. >> that vision. >> of these other. areas of the market kind of, you know, feeding into ai and being able to participate in in that rise instead of just directly with some of these stocks that are, you know, frankly, a bit a bit lofty right now. >> yeah. and i think. >> too, when you're looking at these big companies and this is specifically the case with alphabet today, right, where capex is the big problem. so they came out and they said, okay, we're probably gonna be spending $75 billion on capex this year, mainly towards ai, when that was, what, 43% higher than last year, and it was expected to come in around $60 billion. and that's on top of microsoft has what 80 billion they're spending towards ai this year 65 for meta i mean the amount of money that is going into ai, especially after the face of news last week with deep tech thinking, okay, this might not actually be as expensive to create, yet you're seeing all of that that spending wars are kind of continuing is a concern. >> i mean, don't you want these companies to spend what they are to win whatever race is out

there to be won? i mean, i feel like there are many more questions today than last about deep sea, what it was really made for, and so many other things that we haven't even found out the answers to that are going to continue to come out. i mean, these companies obviously feel like revising up their capex numbers is the right move. why isn't it? >> i think the question, though, is what is the return on that investment and how soon is that coming? right? i mean, i think that they are bringing tools that are more beneficial to all of these other companies who are not forking over the capex. so, yes, it is a good thing. i think a lot of that has already been priced in for them. so i think we'll continue to see. it is a race that needs to be won. i just don't know if they're going to see the return on investment in the short term enough to justify adding more capital there. >> yeah, i guess, sandra, you know, some people raise the issue of valuation in general on these mega cap stocks and suggest it's sort of emblematic of the view of the overall market, that you're going to need earnings to really be good,

because you can only get so much multiple expansion from here. those stocks obviously are at the top of the heap. do you think earnings are going to be good enough to continue to lift the market, and especially these other areas that you point to? >> i think it depends on time horizon, right? i mean, these companies are growing very fast. they're going to continue to grow. and it's about forward earnings right forward vision. and that forward vision is you know, maybe going to be a little bit ways out. you have huge investment you know like from amazon and whatnot into ai. and that is going to manifest. and they are going to monetize it. and some companies are already doing it. but you know, i think for right now it you know, you just have to make sure that it gets built out and that they monetize it, you know, as quickly as possible and that you see that in the results. so it's a real time effort. and i think it's a little bit a ways out, maybe later on this year or even next year. but it's going to happen. >> yeah. we're thinking about tariffs. we're thinking about rate cuts. the fed's quiet

period is now over after the meeting. and several fed speakers are on the tape today, including chicago fed president austan goolsbee. he's speaking earlier this afternoon, steve liesman joining us now with the headlines that you think we need to know about. most of all, steve. >> yeah, scott, i bring this up because i'm hearing more and more fed officials being less and less reluctant to discuss the tariff issue. and in fact, in the case of the chicago fed president being more cautionary about it and saying this is an issue for us and it's a more serious issue, it seems like before they were like, hands off, we're not commenting. they're a little bit more willing to comment in terms of the things that are being said. goolsbee saying, hey, anything that raises prices, we have to take into account, it's going to be difficult for us to figure out if there's higher inflation, if it comes from overheating, or if it comes from the tariffs and the tariff. and the pass along could be worse this time than in

2018. in part, scott, because all the easy stuff that you might have substituted out of from china that could be gone. what's left could be essential items from china that when you have this higher tariff, you have to pay it and perhaps pass the price along. so we haven't even talked to goolsbee on friday and he talked about tariffs, but maybe not in such a stern words about it or cautionary words about it. of course. we talked to susan collins on monday. she was willing to talk about it. so more and more fed officials, scott, are factoring the possibility of tariffs into their thinking. and i think there's two parts of this. it's not sure they're warning the administration, but they are telling markets that there could be a potential reaction here. >> i feel like, steve, if you if you take these comments in total, i feel like he is saying we learned our lesson the last time in thinking that the inflation was transitory, that

coming out of the pandemic, you had classic supply demand issues, which turned out to be more a supply shock. shock. then i think they really realized that it was at the time, which is why the inflation turned out to not be as transitory as they actually thought. and when you look at a comment of what he made today which says, quote, it would be the tendency to follow, quote, pure economic theory and ignore supply shocks such as tariffs was, quote, dangerous. i feel like he's telling you that, that it's not. you can't just look at tariffs and now supply demand and prices going up. the supply shock issue is so much more present in their minds because they were wrong the first time. and they don't want to be burned again. >> yeah, i think that's an excellent summary of the critical aspects of what goolsbee is pointing out, which

is that we didn't we didn't pay attention to the supply side. and generally, economists are more interested in the demand side for outcomes and don't follow the supply side. but we learned in the pandemic that the supply could be a major issue. and he's also pointing out, scott, that with these integrated supply chains, the way they are as cut to the bone as they as they are, there's not a lot of flexibility to react. he also points out the possibility, and he uses this phrase, i want to get it right here. this idea of tariffs on tariffs, he says. you could have a situation where you stack tariffs on top of tariffs, because something going back and forth across the border several times. so you're right. he said he's focusing on the supply side. he said we didn't do enough of that in the pandemic and we shouldn't make the same mistake again. >> yeah i mean look the whole thought process going into the rate cutting cycle to beat down inflation, steve, as you know better than anybody, was to try and crush demand. they thought they had to do that. they had to do that to get inflation out of

here. and there were just so many different dynamics at work that, i mean, they sound like they learned maybe the hard way of how hopefully not to repeat those errors, if in fact, they're faced with some sort of prolonged tariff this time. >> i think that's right. and i think that's one of the reasons they're talking about it. look, it's kind of interesting. kevin warsh had this column in the journal where he sort of said the fed is blaming trump's policies. well, kevin warsh also said that if there's inflation from tariffs, it's on the fed. and that's probably right, at least over a longer period of time, maybe not in the short run. so that means the fed does indeed have to take responsibility for whatever these outcomes are. so i've said this before, scott, if you raise prices, even if it's just a one time price increase, that's full stop for the fed. when it comes to cutting interest rates. you have to see this thing, see the impact, see how it passes through. and now this sort of

cautionary note from goolsbee kind of adds to the notion of, let's take our time here to make sure there's not pass through. and also, as you're correctly pointing out, scott, make sure we understand the supply chain impacts of what's happening. >> yeah. appreciate that steve. thanks for helping us understand this better in these comments, because we're going to get a lot of them in the days ahead now that that blackout is over. so caught i mean, obviously had the reaction on on monday. was it an overreaction or if we do in fact have tariffs or you know, you have more prolonged trade war, are we underestimating the impact on the stock market? >> you're going to get an impact like this. and especially like monday was a good example. there is that headline risk. you're going to get that initial knee jerk reaction with these. and i think at this point in time when markets are kind of expecting or anticipating, is this is more of a negotiation tactic than things that have actually gone in place. and that's why markets have been able to shake it off. so i think we really need to

keep our eye out to what's going to happen there. but that's where it's your big multinationals. so think of like your apples for example, are going to be more at risk from headlines than this rather than for example, your small companies would do less business abroad and less manufacturing abroad. so i think you're going to see it hit different markets of the areas differently. i don't think we're at the end of this yet, but i think that inflation story is probably going to continue because whether it's tariffs, whether it's tax cuts, there are policies that are, you know, possibly going to be inflationary. and that's what the markets are really trying to weigh out here. >> all right. it's good having you here courtney. thanks for being here. it's courtney garcia thanks to sandra cho as well for joining us once again here too. we are getting some more news out of washington today. megan costello has that for us. megan. >> hey scott. we are just learning that. >> president trump has. >> nominated jason. >> trennert to be assistant treasury. secretary for financial markets. >> now, treasurer trennert. excuse me. >> is a frequent cnbc guest and best known as the co-founder and chairman of strategies, the economic research firm. in this role at treasury, he'll have authority over debt. >> management. >> treasury bill issuance. some of what we saw this morning, as

well as some market oversight and some regulatory aspects as well. it will. >> require senate confirmation. >> scott. >> so something to keep an eye on there. but for now, we know that trennert has been nominated as assistant. treasury secretary for financial markets. scott, back over. >> to you. okay. a name and face very familiar to the viewers of this network. good stuff megan. thank you. we're just getting started here. up next is eric jackson. he's back with us. he'll tell us how he thinks tariffs could impact the tech space, what he's heard from the big names thus far and the ones that are yet to report earnings. just after the break we're live at the new york stock exchange. you're watching closing bell on cnbc. (vo) sail through the heart of historic cities and unforgettable scenery with viking.

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moving into the close today. hi, kate. >> hey there. scott. so johnson controls is a name to watch today. >> trading at record. >> highs on better than expected quarterly results. the firm, which provides cooling. solutions for data centers, raised its full year guidance as ai continues to fuel that power, demand and spending. the firm is also naming a new ceo. that's going to be effective in march. and then you got shares of workday also jumping that software platform, announcing it's going to cut more than 8% of its workforce. this is. >> all part. >> of a. >> larger ai push. and the firm. >> had really. >> struggled with. >> slower enterprise spend. >> but workday's ceo saying those cuts are going to help the firm prioritize ai and expand internationally. scott, back to you. >> all right, kate, thank you. back to you in a little bit. that's kate rooney, all right. with all but two of the mega-caps reporting earnings amazon on thursday nvidia and a couple of weeks. what is the takeaway thus far for the tech trade in general? let's ask eric jackson. he's the founder and president of emj capital. welcome back. it's nice to see you. >> you too scott. >> so how would you assess all this so far. right. we got amazon still to come. and nvidia

is a little way. but i think we have a good read on what's happening. >> i think. >> the biggest takeaway so. >> far scott. >> is. we could have had probably. >> what, 3. >> or. >> 4 markets in turmoil. specials at seven, 7:00. >> in the last month. and yet here we are, nasdaq up on the year, you know, other. major indices. >> up on the year. this is a market that wants to go higher despite, you know, put call ratio being. >> so high. >> second takeaway. i'd say on. >> the mac seven specifically. >> scott though is. that i mean the results have been fantastic overall. however, as you. >> kind. of have. >> alluded to. >> earlier in the show, i. >> think i think we're. >> sort of hitting against the upper limits. >> of valuations. >> with with. >> these companies. >> and so. >> it has. >> to. >> come, as. >> you said, from. >> from the earnings. themselves to drive these. >> stocks higher. >> and the. >> multiples are kind of stretched. >> so you. >> know that's tough for a name like google obviously as we saw last night. but it's going to be you know you're going to have to

pick and choose your spots with the mac 7 in 2025 is my belief. it's just not going to be straight up the way it has the last two years. >> in terms of valuation. i you know, i understand the argument, but alphabet's like 20 times. it's 20 times forward p meta's not historically rich is it nvidia. that's your stock. it certainly people don't make that argument about nvidia. >> no i'd say like tesla. >> and microsoft. >> are kind of the two most extreme from a valuation perspective. but some would say they deserve to be because of their business model and because of their growth prospects. and name like google is kind of been the laggard in the pack. and that's that's only only really changed in the last couple of months of the year when they came out with their willow quantum chip. and it really kind of shook people up as, hey, here's a whole new category that we never factored into our some of the parts for, for google. so you're right. you got to you got

to look at each, each name specifically. however, in general, i would say a lot of them have tracked up. apple is a name that tracked up. so out of the seven i like nvidia the most, i own it right now. i like meta, and although i don't own it and i don't own tesla, i don't own apple. but those are those are the four names i expect to traffic in this year in 2025. >> okay, a couple of questions regarding all that. you sold tesla in fact, a few weeks ago. did you do it because of the valuation issues that you have? >> well, two reasons really. like incredible run since the election. i mean, it's straight up basically, you know, and so it just felt like it was time to consolidate some of those gains. but obviously, you know, knew that there was this potential for kind of looming china tariffs, which has played out just in the last day or so. and obviously out of the mag seven,

apple and tesla are going to be the two names that kind of hurt the most. on fears about that going on for a long time. i don't think it will. i think what we've learned this week is that president trump wants, wants deals. he wants to log wins. he sees mexico and canada as wins. i think he wants to lock a deal with china. and i think what was probably most promising on that front is the reaction of the chinese to the tariffs and what they sort of counter-proposed in terms of retaliatory tariffs, they could have gone much stronger, much steeper. they didn't. that signals to me that they want a deal as well. >> so you mentioned nvidia. how are you reconciling this deep seek news in your own mind as it relates to the stock. what do you think it's worth. are you as resolute in that belief as you were pre deep seek news. >> well deep seek you know definitely was a shot across the bow for you know american tech.

and i would say most of all to a name like openai because it really sort of put under scrutiny. you know, it's not enough just to raise billions of dollars from venture capitalists who have an endless checkbook and just think that you can spend, spend, spend, and you're going to have the best models. i think what what deep seat showed is that ingenuity and kind of necessity being the mother of invention and how you optimize your different algorithms to get the most out of your software, can mean just as much as as the nvidia chips themselves. so i think i saw i saw more of a threat to, to the big llms anthropic and such. but for nvidia, nvidia is such a poster child for ai in general. and so we have the, you know, the double etfs, the triple etfs. so it just it just was such a shocker that it really took it down. i stuck with it because i believed it was overdone. and i you know, despite the fact that we have to work smarter at how

we build these models, i don't think there's anybody who's going to, you know, pass on the opportunity to get their hands on some blackwell chips or ruby chips next year if they have the opportunity. so i think the order book for nvidia is going to show to be really strong. we've seen that with the google capex guide and the microsoft capex guide. so i expect i expect nvidia to be just fine. >> before i let you go, let's let's talk quickly. a couple of names that you like that are not within the mag seven. tell me about rigetti computing. what's what's the market cap of that by the way? >> 4 billion right now. so you know, it's one of the quantum names that we weren't talking about until the willow chip came out in december. and then all of a sudden this became the hottest sector arguably in tech. these quantum names, they're all small. they're all, you know, some of them are pre-revenue. so you really got to, you know, go into these names almost like you're buying a biotech. but i don't think quantum is a flash

in the pan. in fact, i think it's sort of going to be, you know, the next generation version of ai. now we have to argue like is a name like rigetti is this, is this a is this a three year story from now, or is it a 30 year story? as we kind of worried about when jensen gave his comments a couple of weeks ago. kind of interesting, though, a week after jensen made those sort of skeptical quantum comments, he announced nvidia's quantum day coming up in march and how they were partnering with rigetti, and they were partnering with all the big quantum players. so, you know, bill gates spoke earlier this week saying quantum computing, in his view, is probably 3 to 5 years away. if this sector is, you know, truly the next gen version of ai, it's going to be much faster, much more powerful, much more cost efficient then, you know, buying a $4 billion market cap, company name like like rigetti. that's a pure play today. does that have a chance in five years to be a $400 billion company? yeah, i think it does. and that's why i mentioned. >> i mean, a lot of these, we're trading like it was 3 to 5

minutes away that, you know quantum computing was going to happen tomorrow in some magnitude. that was going to justify the move that a lot of these stocks had made. when jensen huang and others made those comments, those stocks got obliterated, absolutely destroyed. i mean, it cost people a lot of money. i'd be hesitant to think that, you know, it's not dangerous to think that another one of those moments could happen yet again. for as you said, i don't know the, you know, the financials of this specific name, if it's pre-revenue, if they're profitable or what have you. but if they're not, theoretically the valuation would be hard to justify. no. >> i mean, all of these names are you know, you're talking about 11 million in trailing revenue, 22 million, 33 million for kind of the most established players. so minuscule. so yeah, it's small, but what's the opportunity? and is this is this really a sector that could be kind of, you know, take over the

throne versus risk, right. versus that's what. >> this whole game is about, opportunity versus risk. right? i'm wondering whether we learned that the risk is too big and it's not worth the opportunity yet. >> well, is rick rigetti at 20 bucks after it had been at two bucks a couple of months ago, a lot more risk. you're right. dropped, dropped within 72 hours. i think of jensen's comments to six bucks. i mean, just think about that. you know, 70% value destruction in three days. right now it's at 14 bucks. and so i'm, i'm saying i'm saying, you know, you got to hold your nose. this is not a 20% position in your portfolio, scott. but should it be 1 or 2% position? i mean, i think about it like the way that tom lee used to counsel buying bitcoin as like maybe a 1 or 2% position back in 2014, 2015. and i think you ride it out, you know. and yeah, back in 2013, if bitcoin corrected from 200 bucks to 140 bucks, you know, it was a huge

percentage return. and now, you know, sitting here ten years later, you know, you scratch your head wishing you'd had the opportunity to buy. so scale in at the appropriate time. you know, i would say 4 billion market cap. not much is priced in here. i mean, there's a lot of other kind of pixie dust type stocks that are trading for way higher market caps than that. so, you know, do your own research and kind of, you know, pick your spots to get into some of these names and realize they are going to be volatile. >> i appreciate the conversation, eric, very much. thank you. we'll talk to you soon. >> thanks. >> that's eric jackson up next, ed yardeni, he's back looking beyond the mag seven and tech. tell us where he's seeing the best opportunities next. >> i. >> want to lose. >> 15 to 20% of your weight in a year. try rose insurance checker to see if you're covered for glp one for free. just submit your insurance card and we'll take care of the rest. go to rocco insurance for your free insurance check.

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down quarterly earnings before the call with wall street. plus, trade war impact john ford. morgan brennan closing bell overtime today for eastern. cnbc. >> welcome back. stocks getting most of their tariff induced losses back even after alphabet's disappointing earnings report. our next guest arguing there are many opportunities in the market and not just in tech. ed yardeni is president of yardeni research. back with us once again. as always, good to have you. thank you. i mean, we've had some head spinning action already this week. what do you make of what the market did and how it's recovered and what it all means from what happens next? >> you're right. you almost need a neck brace to watch this market. but i think what happens next is the bull market moves on. i think it's going to widen out to the s&p 493. i kind of view all companies as tech companies either make it or you use it. but within the context

of a broadening market in terms of sectors, i really like the financials. i think the financials still have more upside, not only in the large cap, but especially in the mid-cap area. the economy is doing well. the credit system remains very viable. so that's kind of my thinking of where we're going up ahead here. >> is that why the market, you know, may freak out for a minute on a tariff headline, but then enables itself at some point, whether it's during that day or the following, to keep its eye on the prize. why we've been bullish as an investor class in general about what we think lies ahead. >> yeah, i think, you know, they say that. watching laws being made is kind of like watching sausage being made. you really don't want to see it. and maybe that's the same thing with tariffs. it's too visible here. and there's a lot of negotiating going going on. and you know we start out on monday with the market being freaked out. and by late in the afternoon mexico

gives trump something. and he says okay we'll postpone things. so it's a negotiating game. and i'm not sure it's really all about the tariffs per se. >> it's. >> not just a tariff war. it's a war over national security, a war over drugs. there are a lot of issues involved here. and the market's saying, well, what does this really have to do with us? the economy is doing well. earnings are coming in fine. we can get excited about ai. and so i think the market's finding some resilience here in the face in the face of some pretty volatile data sure. >> but i mean lasting and steep tariffs could have an impact not only on inflation but on economic growth. >> absolutely absolutely. >> but i think the market is coming around to a view i have, which is that this too shall pass. i don't think the united states or the other, the people sitting on the other side of the table, really want to go into a tariff war situation. i think you mentioned before that even china has kind of held back on the amount of retaliation. they

want to make a deal. and so i think that's what what's going on here. and the market increasingly is focusing on what's important. and that is earnings. and the earnings outlook is, i think extremely good. i mean earnings. >> i think i hear you making the point that the next tariff headline might not have as dramatic an impact on the market as this. >> i think that's a good point. i think that's something to watch. if you don't see that the next tariff story has much impact on the market, then the market's decided, let's not let's not focus on this much more. let's i mean, even dc seems to be an issue that's passing by the wayside. the fact is companies are spending and planning to spend a lot on on equipment and software and technology. we're seeing that in a lot of surveys, and we've seen that especially since the election. so we're seeing some animal spirits driving this. and so the economic outlook looks really quite good. the manufacturing purchasing managers is back above 50. the

granted the services weakened a bit but it's still very much an expansion territory. >> and i'll see you soon. thanks as always ed yardeni. >> my pleasure. >> all right. up next we track the biggest movers into this close. kate rooney, back with that. hi, kate. >> hey there. scott. >> so demand. >> for weight loss drugs is driving one pharma giant higher, and then one dating platform striking out on its forecast. more on those stock moves after the break. >> the bond report is brought to you by pimco, a global leader in active fixed income. >> in a world of. >> uncertainty and. >> disruption.

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>> and make your dream office a reality. >> with less than 15 from the bell. back to kate rooney. now for the stocks that she is watching. hi, kate. >> hey again scott. so, novo nordisk, let's start with this name. shares jumping today as demand for weight. >> loss drug. >> wegovy drove some better than expected profit for the quarter. wegovy sales were up over 100% year over year, but novo did warn that there was going to be a slowdown in demand for the rest of this year. you can see shares up 3.5% roughly, and then shares of the popular dating app company match group lower today thanks to some weak guidance for the first quarter and for the full year. this was due in part to a decline in subscriber growth. match also announcing the appointment of board member and zillow co-founder spencer rascoff as its new ceo. shares off about 9% heading into the close. scott, back. >> to you. >> all right, kate, thank you

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unbelievable. stop waiting. start investing. e*trade ® from morgan stanley. >> all right, we're now in the closing bell market zone. cnbc senior markets commentator mike santoli here to break down the crucial moments of this trading day. plus key earnings reports we are watching for in ot. kristina partsinevelos on qualcomm and arm holdings phil lebeau looking ahead to ford for us. but michael i'll go to you first. we've got a decent day i guess out of today. >> i mean it's pretty unassailable. the market's ability on display to just kind of rebalance itself almost to the point where it's like, okay, raise the degree of difficulty. you got to have google, amazon, apple, tesla, palantir, uber all down a lot. and somehow you got to get the s&p positive. i was looking earlier, you know, talking about the beneficiaries

of all this capex. right. so alphabet down $200 billion in market cap today nvidia and broadcom together up 185 a ton. so they've essentially offset one another. now can can everything run this perfect for this for much longer. can we always count on this choreography. of course not. but you know while it lasts you it shows this very active dispersion trade. at the same time, i feel like people are kind of spending their risk budgets to start the year. it's not clear to me they have a lot more of that to do. february back half gets a little dicey, so i think you have to respect it without thinking that it's bulletproof. >> all right. earnings from qualcomm and arm holdings christina that we're looking to. and qualcomm is off to a pretty good start this year. >> yeah they are especially when you compare it to the likes of amd or intel. but three key themes dominate qualcomm's upcoming earnings. you got smartphone momentum automotive softness maybe that we saw with nxp and texas instruments and then eye positioning and smartphones. the company is winning big with android lining 100% of samsung's galaxy s 25

chips. but is that enough to offset the looming loss of apple's 5g chip business? the second focus is on automotive and iot, the internet of things, where peers like i mentioned on sammy, texas nxp have reported some weakness. and then finally china. it's at almost 50% of its 2024 revenues. we could get some insight on domestic smartphone trends and any tariff or export control concerns as well. you talked about arm. they're also out after the bell minutes away. it makes money by licensing its chip designs to semiconductor and smartphone firms like apple and qualcomm. two positive drivers for this thing or this company is arm's royalty rates. they're moving higher in the smartphone market, which makes up 50% of their revenues, and then demand for more ai data centers could help expand its ip licenses. also, why you're seeing the stock up. look at that jumping 6% its earnings scott. >> thank you, christina. thank you very much phil lebeau. what are we going to get from ford. probably a lot of talk about tariffs. no. >> there will be some

discussion. >> i'm sure. >> ford will have some discussion. during the analyst call about tariffs the potential. >> impact of them. >> first we're going to get the q4 results. and we get those. shortly after the closing bell. and we're expecting. >> or the street is. >> expecting earnings. >> per share of. >> $0.33 a share. lower warranty costs. >> that's one of the questions. >> that's out there. >> that has really been a drag over the. >> last several quarters. >> have they shown improvement in that area? and then, of course, there's the guidance for 2025. >> as you. >> take a look. >> at shares. >> of ford. keep in mind that when you talk about tariffs. they get roughly speaking i think about 12% of. >> the vehicles they sell in the u.s. are built. >> in. >> mexico, far lower. >> exposure than gm and stellantis, or 15% built in mexico. >> still, it. >> would be an impact if they're ever put in place. >> lots to discuss with jim farley. ceo of the ford. >> motor company. we're going to be talking with. him on the overtime, scott. we're going to be discussing not only the results, the guidance, but yes, we'll talk about tariffs and what the potential impact could be for ford. okay. all right. on

the overtime. we will see you then. phil lebeau thank you very much. we'll see the numbers and that interview. of course mike i'll turn it back to you. we've got about a minute left. we're going to turn our attention to amazon sure tomorrow and see what that means in the context of what we've learned from these other mega-caps. >> yeah, putting a lot of it together in terms of cloud plus capex and what we're meant to understand about that, amazon really has been on a great run. so it's obviously, you know, a pretty challenging setup, arguably, although backing off today alphabet numbers, you've had enough give and take among the mag seven. you know they haven't really distinguished themselves as leadership but obviously met a really strong apple down today kind of holding above its 200 day average. that's something to keep in mind. it's around 220 mark a share. so i don't know. everything's kind of holding together. yield's down has meant that positive breath, positive small caps. that's been the pattern. don't want to see yields fall apart. but at this point, coming off the boil seems like it's the excuse to get back into the financials and smaller

cap. >> all right. >> well, if i told you apple and alphabet. >> are going to be down in the nasdaq, was going to turn green and maybe close. >> there, you say, i'll take that. >> i don't. >> believe you. but if that. >> happens, i'll. >> take it. >> and we. >> may actually get that as. >> the bell rings elsewhere. >> we are in. >> the green on. >> both the dow. >> and the. >> s&p into overtime. >> with morgan and john. >> well, that bell marks the end of regulation. >> quanex building. >> products ringing the closing bell at the new york stock exchange. >> huntington bank shares doing the honors at the nasdaq. >> and while stocks staging a comeback earlier in the session as the major averages. >> close right about. >> yeah right at the highs of the day. >> for the s&p. certainly that's the. >> scorecard on wall street. >> but winners stay late. welcome to closing bell overtime i'm jon fortt with. >> morgan brennan. >> well nearly. >> every sector. >> is in the. >> green today. >> although communication services is. >> sharply lower thanks in part. >> to a sell off in shares. >> of alphabet. >> that's following. >> a sales. >>