it creates further racial division and makes it harder for this country to come together. that's it for us. they'll be back next week on "wall street journal at large." thank you for joining us. >> welcome to "barron's rountable" where we get behind the headline to prepare you for the week ahead. i'm jack otter. coming up aol co-founder legendary internet entrepreneur steve gates and where he sees opportunity in tech and later wall street next frontier we will tell you how you can invest in space and it's not rocket science. we began his eyes with what we think are the three most important things investors out to be thinking about right now. tech stocks struggled and bond years continued to climb but

even as it raised forecast for economic growth and inflation non-fungible tokens have become the hottest asset in 2021 taking in 200 million in the past month. mainstream business including the nba and warner music are involved and with march madness underway wall street has good news for sports with estimates up to 183 million up for grabs. my colleague ben levinson and jack howe. equity has had not such a great week down a little bit but what's interesting is the bond market seems to be in control of the stock arcade. >> it really does jack or the nasdaq fell for the fourth time this week and that's because bonds rose again and now they are up above 1.7%. the fed can't keep monetary policy in place but did nothing does slow the rise of treasury yields. you ended up with the real damage happening in stocks like tesla and zoom. both fell more than 5% of the

technology spider fell 1%. it wasn't smooth sailing for the value trade for the dow finished the week down 0.5% oil prices tumbled and that caused it to drop 7.5% and a change in the rules by the fed for banks cause the spider is in p. bank to fall 2% but if yields are going to keep rising these are the areas you want to be end. jack: one of the reason yields are going up is because the market for sees more growth coming up as we emerge from the pandemic and when you get more growth than growth stocks become less valuable. do you see that over the coming months do you see that value trade continuing? >> i do. these stocks are linked to the value stocks are the only ones that are benefiting right now. we talk about something called

correlations which suggests a connection between an asset or an index or a stock and something else and in this case when the correlations between tech and yields is very strong when yields go up tech goes down trades a strong negative correlation. the only ones who benefit are the value stock so it's a place you have to be if you think yields are going higher. jack so the set of images i guess i will call the 5000 images sold at auction for $69 million in router new acronym in. what are these things and why should we care? >> and nfc and non-fungible tokens the easiest way to think about it is think about it like a piece of property deed only this is digital property images audio files stored and that's easiest way to think about it. they existed for a little while but what we are seeing now the reason we are talking about it the reason we are seeing these

items being auctioned on krispies has a lot to do with the run-up in currency. it would not be at the same prices for these items and assets if it had not risen so much in the past few weeks. jack: the four of us had our meeting before the show we talked all things financial knife you like if we put our brains to it. what could we think of that would be a great sign of a bubble i'm not imaginative enough to come up with anything better than this. should we worry about them? >> hit points to the market. in the future everyone will be perfect with these tokens you can monetize. they are talking about tokenizing things like video clips and instead of baseball cards you have these videos of the best baseball players ever so when you are monetizing things like that it might mean a little bit too much in the market. jack: the moral analogy is great

for this is a guy who became famous for a soup can. this is the digital equivalent. jack march madness has begun and before i ask you about your bracket let's talk about the sports betting, the sports betting that it's come along with this in and the companies that are moved into that space. >> jack 46 million americans are expected to bat on march madness this year but that's up about 70% from two years ago. last year we had a march and we have a lot of madness but we didn't have a march madness. we skipped it last year so this growth in sports betting is great news for shareholders of these gambling stocks. drafting is up 535% over the past year and the uk company its stock is up only 180% and its

shareholders are saying that's not enough. why don't you compete with draftkings called fanduel. they said you know what we are thinking about it and the stock rose 10%. you might have new opportunities their same. jack: and the other thing in the sports world which is the nfl's selling streaming rights. i'm wondering when this is going to be happening. we are saying that though streaming into the modern era here? >> this is a big deal. it's an 11 year deal worth more than $100 billion the last thing we had was a nine-year deal so big and increasing the amount of money and a lot of it is the traditional television player will re-upped their game packages and secure though streaming rights through two big changes first of all disney owns abc and espn. skidding two super bowls but amazon prime is getting exclusive rights to "thursday night football" prepares a night

football is on monday night and although it's certainly not sunday football but is the first time we have seen this exclusive deal for streamer. jack: howard cosell's wishes he could do those abc games for legendary internet entrepreneur and co-founder of america online and an early investor in draftkings steve king tells us where he sees opportunity coming up next. it's game time, let's meet the defending champs. g. hargrave thomas, point guard. bryce matthias, forward. kim kietz, investor. oh, i invested in invesco qqq. a fund that invests in the innovations of the nasdaq-100. like next gen 3d rendering software. you don't have to be an advanced graphics architect to help realize a more vibrant future. become an agent of innovation with invesco qqq. ♪

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all right that's a fifth-floor problem... 50 years or older? ok. not in my house! ha ha ha! ha ha ha! no no no! not today! ha ha ha! ha ha ha! jimmy how happy are folks who save hundreds of dollars switching to geico? happier than dikembe mutumbo blocking a shot. get happy. get geico. fifteen minutes could save you fifteen percent or more. steve case cofounded america online and is the legendary entrepreneur now he's a venture legendary entrepreneur now he's a venture capitalist legendary entrepreneur now he's a venture capitalist awards a finding opportunity in tech today? do you case joins the napley thank you so much for joining us >> good to be with you. i want to start with your venture capitol fund called rise of the rest forget the big investors jeff bezos gray

gallate of hedge funds aim and i guess the idea is to spark innovation in the middle of the country that hasn't seen a boom time in san francisco and new york again tell us about those? >> we started the revolution 10 years ago and more recently relaunched prominent entrepreneurs and investors backing us. the idea is there great company are mayors building great investments but venture capitol focuses on 75% of venture capitol in three states california and new york and massachusetts and places like ohio pennsylvania michigan and gets 40%. our seed fund is designed to back those onto buyers and so far we have invested over 150 companies in 70 cities and we have done in partnership with more than three to 50 regional venture capitalists. we believe the next decade will see a leveling of the playing

field and silicon valley will continue to be the leader of the pack by far but we will see other cities around the country rise up. jobs will be created their economic growth will be driven there and investor returns their. there's a real arbitrage there and there's so much venture capitol in silicon valley. those same companies in other parts of the country the valuations would be lower so there's an opportunity for investors there. >> that's great you are doing that. i want to ask you about another thing and you know better than i do but it basically says platforms are not liable for things published on those platforms. you are a big supporter of the law and some people say that enabled the internet but it's a different internet now people have become adept at publishing misinformation and algorithms accelerate that misinformation to get people riled up which makes company more money. one of the changes we might want to think about is section 230.

>> well it's similar. that was put in place three decades ago and not that many people are on line until we start aol. 3% before on line for on line for one hour weeks on the early days it was about getting the idea of the internet to rising to the dark on line. years later when it got more popular some of the discussion happened around the 230 rule but that's not many people on line. people were posting things on bulletin boards and writing things in chat rooms but there weren't algorithms that were lifting up certain content which is obviously the success of facebook and other platforms. it's using an algorithm to define what you see in people's feeds. given that the internet is so dominant in our lives and given the use of algorithms it does make sense to take another look at that. in fact it hasn't been my focus but i'm not surprised there

again there is a recognition and it's time to take another look. >> an hour a week on the internet. it's kind of a mind-boggling thing. >> pre-pandemic and of course we are always on the internet in on zoom and other platforms. amazing from the idea that frankly most people didn't believe would ever be mainstream but we are all living more and more of our lives on line. >> one more question going back to those days as all that.com excitement led to a bubble in the stock market and the prices in those companies today is very different. new companies are m profitable and it's growing at a rate that's frankly unheard of. still we are seeing gamestop with not a great business opportunity skyrocketing at some of the stacks are good and you are involved in some and others seem awfully risky. do you sense any bubbles and our investors getting too optimistic?

>> the tech market has been strong and interest rates have been so slow and the scene stocks come down in the last few weeks not surprised by that they think it's important for investors. we'd not just focus on the company's potential but also be but also the of valuation. there could be great companies that are overvalued so we spent time trying to understand that their one example is a 500 million-dollar valuation with risk associated with the policies and the new york attorney general shut down some of their operations but we believed in the idea and thought that was a fair valuation. it did go public a year ago initially had a three or 4 billion-dollar valuation now it's over $20 billion. the number of states have changed their policies to create opportunities for growth for drafting so that's an example of something that early on we believed in the idea believed at the time valuation was approved for it.

it did go public successfully in the market is now opening up in treating other opportunities. >> steve congratulations on your continued success and thanks for coming on the show. appreciate it. coming up in the past year or so wall street has been over the moon about investing in space. we will tell you how to do it, next. cell phone repair. did you know liberty mutual customizes your car insurance so you only pay for what you need? just get a quote at libertymutual.com. really? i'll check that out. oh yeah. i think i might get a quote. not again! aah, come on rice. do your thing. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪

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nuke business opportunities and tumbling costs have created new ways for investing in space. where's the space market heading and how large will become cooks we have analyst adam jonas joining us on the panel but i want to start with you three years ago you wrote it cover story on space investing you predict that once guys like elon musk and jeff bezos reduced the

cost of space launching quote innovation that follows might -- are we starting to see that innovation yet? >> i think so. if you think back 30 years ago about what the internet look like and compare that with now the contrast is ridiculous. but you can go back 50 years and see television footage of a man walking on the moon could have looked for a while like progress in space had stalled and suddenly as you say because of entrepreneurs who make vast wealth in the stock market largely just days as richard branson and especially elon musk it's opening up new opportunities in communication, tourism. so many activities might be bubbling. investment dollars are pouring into sometimes a bubbles leave behind real commerce. >> one expert quoted in the story said they were at house and launches in 2020 and he predicted that would be 10,000 by 2030 great adam jump in here.

where's this going and what are the opportunities? >> when we think of the space economy we divide into three domains communication, transportation and earth observation. we do those it as naval technologies that open up the three domains and i think for investors these next couple of years is the time to do the homework or the temptation might be to put money to work right now without doing the homework or they need to study what the heck elon musk and spacex are doing in their various fights and as we gain knowledge on that in the mess the public will have a better footing to make more important decisions on how to employ capital. >> any prediction on how big this market becomes the next five or 10 years? >> with a model for the adjustable market that goes up to 2040 and we get two numbers around 1.4 trillion, 1.5 trillion. i have to admit those numbers are about three years old.

around the time the barron's cover story came out and a lot has changed. pardon the pun here i think when we think about space it will touch about every industry and there are aspects of what spacex is doing for example that we think could impact anything from quantum communications to space transport for earth that can really have profound implications on how we get around on our planet. >> wow. >> at him i'm curious how big the market are the opportunities for high-speed internet access from space? >> a great question. we think traditional telecom investors that are making 5g bets and terrestrial communications that they tend to think about the satellite low earth orbit constellation business the way it was done in the mid-90s and there was a

well-publicized failures there. if you think of in terms of homes and households are remote farmers are areas where they are not served well by 5g networks but what they think is going on is that downlink from satellite will communicate with just about every moving object. every plane come every ship, every car and truck and every mobility. some of these may be the majority of these moving objects the primary comes will be 5g network but triple redundancy might rip rely on satellite redundancy in the satellite might do the primary communication. >> i'm a fan of fields and by lockheed market and spacex going public by acquisition. would you make of the old new divide in the space race? >> i don't know if it's so of the divide. there's just really a lot of capitol still the go-round and

there is no monopoly on imagination and talent. what i would caution your audience though it might be tempting to think i want exposure to space below type in space as is keyword and look for ticker symbols. i think it's possible in some scenarios the list of tickers you'd come up with might give group of stocks that you do not want to own and could be a list of disrupt t. instead of destructors. i would do education and watch what spacex is doing very carefully. they may do to the telecom industry what elon musk is done to the battery and car industry and we need to pay very close attention to that. sad that the danger and opportunity investing in tech. thank you so much for this is fascinating stuff. >> thank thank you. up next roundtable members give their investment ideas for the coming weeks. stay right there.

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for a long time. investors are watching their stocks go nowhere. finally they went somewhere and some people think maybe they went too far too fast. >> it's getting too these value stocks. look at discovery the top performer in the s&p 500 since november when the vaccines were in discovery with 260%. you know the property brothers on hgtv, they have a dermatologist who does things like frankly i wish i could unsee at this point but that stock has gone up to 23%

earnings. you could make the case that the stock has suffered around but it's a growth stock it does point. so goldman this past week said look the valuation gap between the cheap stock and expensive stock in the market has narrowed but it's not yet back to its historic average. they ran a stream for cheap stocks and companies is tended tend to do well and a rising interest-rate environment. devin energy and kilroy realty. >> we have time for two more pics redo of a value stock for us. >> i do. thanks my favorite sector. financial they are the ones that i could yield of 3.1% and will do well in the economic recovery. >> was the half-life of your idea? hammock of the world's largest uranium producer with like you

would break out that a pullback giving investors another chance to take over. >> great ideas, thank you so much. for more check out darren star, don't forget the follow us on twitter at barron's on line. that's all for us. stay safe and get your shots. see you next week on "barron's rountable."