tv The Claman Countdown FOX Business April 26, 2021 3:00pm-4:00pm EDT
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i lori lightfoot the parts of that sum and that's what keeps me going back for more, i'm still hungry for amazon. charles: all right, well we appreciate it. always appreciate your enthusiasm, and your expertise, and i've got to tell you, liz claman, the market is starting to bubble up here into the close this tesla is everything. liz: everything, right? i mean, and here is my question. are we going to see elon musk doing the happy dance when tesla earnings come out after the bell that's his thing, right? he did the happy dance? [laughter] we can't show this enough. analysts already looking ahead, not to profits but one crucial piece of information that could send the stock to mars, or bo ring down into earth depending on what comes out. we're about to tell you what that magic metric is and why it's the one thing you need to listen for in tesla's report and apple baking a massive $430 billion investment pod promising to spend every slice on companies in the good
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old olds u.s. of a, and handing out cash to u.s. tech construction and manufacturing companies, our floor show trader s will make the stocks most likely to benefit as apple grows. markets kicking up a massive week of big name earnings reports and of course, wednesday, the crucial fed meeting announcement with a big target. the s&p 500 taking aim at its 24th record close of the year, just needs to be up five points it's up 12 right now. and it's no game. we're plugging you into, have you heard about this , the digital real estate market that's creating a wave of virtual commercial real estate moguls, making real tasks a pixelated land. we've got an nft millionaire at the center of the metaverse to explain how this brave new world works and whether it might or might not be for you. okay, so i'm talking six figure purchases of pixelated real estate.
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a blockbuster earnings week on wall street kicking off in fewer than 59 minutes from google to microsoft, jet blue, boeing, facebook, apple, amazon, mcdonald's some of the biggest names in the world are spanning the week from the checkout cart to the cloud, and they will reveal, of course how much they made or lost during the quarter with the fireworks about to get underway with tesla after the bell, let's get you charged up for the big reveal from elon musk's ev empire with oppenheimer senior research analyst collin rush who has an outperform and a price target of $1,036. all right, collin, as we look at what's going on with the stock at this very moment i'm guessing we all agree that tesla is going to report what a 7th profitable quarter in a row so let's get the number everyone is really waiting for full year delivery target, collin what's your prediction? >> you know we're with 7,085 vehicles this year but we think the number can reach north of 900,000 and what we're going to hear tonight that's critically important is around gross margin s and get a sense of how
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their china business is trending without the model x and model s 9 and then beyond that i think ultimately for the stock though, what we want to be watching for is progress on their full self-driving technology, and that's really what's driving valuation of the stock right now but tonight we're looking for gross margins and how that's trending in china, what the commentary is around the full year numbers which we think can head north from where we're at right now and ultimately the cadence of the rollout of the fsb technology. liz: okay let me just get to this number you've thrown out there, 783,000 but then you said it could be 900,000. well then why not pick something closer to 800,000? >> you know, you got to walk before you run. so we've got bullish numbers here in the first quarter. we've seen a lot of headwinds within the supply chain, and so how they're managing that short-term is important, but most importantly where they're at middle of the year, as we get into june, july, and august, and moving to the back half of the year is they have some new capacity come on line.
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that's really what we're concerned about but we think there's a lot in the supply chain right now, and the leaders in the industry are actually faring better than some of the stragglers and you see tesla is strategically important for a lot of the suppliers and actually access to what they need and we hear some of that tonight. liz: let's bring in barrons senior special writer , alan ruth who covers tesla very intensely. what is your number? we're looking at this metric that we feel is the magic metric , and that is full year delivery numbers. now, we know that in the first quarter, they hit 184, 800 so that was way better-than-expected. what are you predicting elon musk & company come out with for full year delivery numbers? >> hi, liz, thanks for having me. it's a good question, right? the end of last year, and first quarter, you know, they were sort of vague on full year guidance. they talked about 50% compound annual growth for the foresee
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able future, better than that in 2021. people have coalesced around this 800-850,000 range, but then we have the global semiconductor shortage. i think anything above or anything leaning towards that 800,000 and above number is probably fine from an investor expectation perspective. anything beyond that 850 towards the 900,000 will be perceived as a really big win, especially given some of the challenges other automotive makers have faced because of the chip shortage. liz: collin just talked about, you know, the china business. a greater part of the china profits may very well have been what contributes to whatever the revenue number is and by the way the expectation is for revenues of about 10.29 billion. what do you think, allen. how big is that china business and will it surprise? >> i think that it will, i think that the surprise will be
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on the profit margin, right? so they just started shipping a chinese-built model y at the beginning of the year, localized production is cheaper, offers better profit margins that's what happened with the model 3 when they started making that in china, so i don't think it would necessarily be a sales surprise, but i do think that, you know, gross profit margins could surprise the upside. that might be the biggest surprise of the quarter, and i think it'll all trace back to model y production starting locally. liz: yeah, okay, that's exactly what collin said, watch out for those margins. quickly, you know, allen, you've got to talk to me about elon's production about the model s plaid. this is the high end luxury sedan that supposedly goes from 0-60 in what, two seconds or something like that. we were expecting that end of first quarter, beginning of
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second quarter. do you think that the delay has to do with the chip shortage or something else and when will we see this? >> well, you know, i think we will see it probably by the end of the second quarter. i don't think, so from a volume perspective, the model x and the model s aren't really the drivers. i think it's important to see some good traction in the plaid because it's really tesla's, you know, first sort of refreshed model s, right? to show that putting some extra effort into the car can drive sales volumes, but to your point , i mean, this is going to be like the top end model is like $140,000. he boasts it's the fastest production car ever made with 0- 60 in two seconds, so i think that, you know, it's around the fringes as a stock issue because volumes won't be very big. people will want to see them execute, they will want to see the refresh go well, but as long as it doesn't drag on
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too long, and as long as , you know, the performance metrics are as advertised, people will quickly flip to things like chinese production, german production, cyber truck coming at the end of the year. there will be bigger issues than the plaid. liz: collin speaking of issues before we go, you know the china issue was customer service. there was a lot of news recently just a couple of weeks ago when a customer who had bought a tesla couldn't get anybody to answer her complaints about the problem with the brakes or something. she jumpsed on top of a tesla at the shanghai auto show and that sort of wrestled out an apology from tesla and they setup a customer service line, not to mention this houston accident. we still haven't figured out exactly what happened there, but two people were killed when the car hit a tree, apparently nobody was in the driver seat, at least that's what's been reported. how crucial will it be for elon musk to discuss those issues on the conference call tonight? >> i'm not sure it's super important, around the crash of
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texas, sadly given the tragic loss of life there, but i do think the customer service issue in china and the issues for the company there, i think it's important for them to nip that in the bud. it's an important market for them. they've gotten a lot of support from the chinese government in terms of being a holy owned entity in china and their manufacturing there. i do see them leveraging some of the potential of moving into india, as an important bargain ing chip for them with the chinese government but it's important for them to serve those customers well and i think they're committed to it and so i think we'll hear that from the company tonight that they're working how to optimize the system given the volume of things they are taking on and the magnitude of this , there are some things that'll slip through the cracks and they with filling those holes as they can. liz: collin, allen, thank you. the stock is trading up about 1% ahead of the numbers which come out after the bell. thank you so much. here is a question, will elon musk, during that earnings call,
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take a swipe at the long-rumored apple car maybe, and will apple ceo tim cook even mention a car when the tech giant reports earnings wednesday? well cook already is making big news today announcing that apple , are you ready for this? is prepared to spend $430 billion to create 20,000 new jobs across the u.s.. how is he going to do that? by directly spending on parts and materials from american suppliers and data centers and the build-out of a new $1 billion campus in north carolina. putting apple stock for the moment aside, what's the stock you might want to buy now that could pay off from this announcement that came today? floor show traders, phil, you get to try and you late first. and the investment implications from this announcement which stock could benefit from $480 billion whopper spending by apple? >> well, when you talk about that triangle area that's old ibm territory, right? that used to be their triangle
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back in north carolina and now they're given time cook to come in there and build an entire complex so i think that that company is going to benefit only because of the entire tech revolution that's coming, and because of increased competition you know, when somebody comes to your home field, right? and tries to compete with you, it really lightens things up but i think it's a bigger thing here it's just part of what donald trump was saying about hey, apple, bring your business back to the united states, is this joe biden build back better are we going to see more of these companies come to the u.s. and make no mistake about it. the risk of doing business in china is rising and i think we're going to see other companies do this as well. you also got to look at micron technologies and the chip sector is hot right now, it's going to continue to be hot with those shortages i think that stocks going to do good as well. liz: okay, micron, interesting. that's the chip place from phil, what about you, scott. what do you see as an opportunity for someone's portfolio right now that will eventually pay off from this big chunk of spending?
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>> well first, before i get into that i just want to say you know whose going to benefit the united states of america keeping jobs here, high paying jobs, congratulations to apple, who i think could also benefit to go on top of phil, 5g. you know, right now, every iphone moving forwards wants to have the 5g network, it has to expand so the chips that need to go into the 5g phones like a marvel, i think that company could be a good one, longer term if you don't want to pick an individual company in 5g, there are two sector etf's, four 5g, one is nxtg, that's something that might not give you you as big a return as an individual company but at least you're involved with the sector and the other is fivg , both of those have a lot of exposure, or all have 5g companies in there, so, the stronger apple gets, the more they are going to roll out new phones that are going to have 5g and those will benefit and i actually wouldn't mind buying real estate in north carolina, some pizza places, a lot of jobs coming there, you
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know, if you're on the ground in north carolina, snatch up some real estate around there because a lot of people are moving there , congratulations to them. >> absolutely. liz: yeah, and materials and cement suppliers right? if they are building that campus , great to see both of you terrific ideas, thank you. check the nasdac up 131 points, that's the biggest percentage gainer of the big three. bitcoin stuffing the slide, after dropping below $50,000 for coin on friday, it's now backup above 54,000, finding life right now with a decent- size move, could the crypto comeback come courtesy of jpmorgan? sources telling coin desk that the big bank may be prepping to rollout its own actively-managed bitcoin fund, as early as this summer for its private wealth clients. jpmorgan shares, we could call them up two-thirds of a percent and look at digital currency exchange coinbase getting a grip once again after a struggling after a direct listing a week and a half ago, coinbase better
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by 3.5% to $301.83 and from crypto to the blue chips, could amazon be ready to join the dow 30 jungle? charlie gasparino breaks it on the mega move that could be in the works if the e-commerce and cloud giants, oh, amazon is a dow component, i'm surprised it's not already there, closing bell ringing in 45 minutes. we are coming right back and we're watching the dow right now that has struggled to get above the flatline. it's down nine points. (vo) ideas exist inside you,
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how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business. liz: a fox business alert, i want you to look at the amazon intraday chart here you can see it was just kind of bouncing around the flatline, and then suddenly a dramatic move jumping to the upside, exactly at 1:29 p.m. eastern time took off like a blue origin rocket. after charlie gasparino tweeted this. breaking: traders say an amazon stock split is likely in 2021 possibly as early as thursday, when the company reports earnings catapulting, as jeff bezos significantly
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ahead of elon musk's as the world's richest person as the move would then allow amazon to join the dow 30, so to charlie gasparino, i mean, this is a big move in the stock that directly correlates to the tweet. tell us exactly what's going on here as best you can figure. charlie: liz, i can't believe it moved the stock this much. a couple things. the speculation of an amazon stock split is has been around a long time. i mean, people have been talking about this thing splitting late last year, and at 2021 be the year it would split. it is split according to our charlie brady about three times in the past but that was early on in its history before the dot com bubble burst but now we're talking about a run-up from about $7 post dot com bubble that was the low achieved after the bubble burst to something like $3,100 today. the stock is so high, liz, that
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it can't be included in the dow jones, so, what we've been doing , eleanor terit, my producer, has been working the phones on this thing, and basically, a lot of people think , a lot of traders think and investors in the stock think that there's going to be a stock split soon, and it could come on thursday. they announce earnings on thursday, as a way to jazz the stock up. now, like i said, i'm blown away that the mere speculation of that moved the stock this much and that will tell you something about the crazy trading period that we're in right now, and by the way, that stock moved. we made jeff bezos richer than elon musk, i believe. i believe before the stock moved that musk was nominally the richest man in the world. after the stock moved, bezos, you know, today, took that lead at something like $197 billion,
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[laughter] i can't even believe i'm saying that, it's so out there. so, i guess thursday is the day you've got to pay attention to. again, you know, usually when you get moves like this , there's obviously there's a lot of people believe this is going to happen at some point in 2021. we'll see if it happens this thursday. amazon had no comment, but, you know, it is an mazing story when you look back at it. liz, i can't tell you, you know, if you are a historian of this business, of caltech and wall street, amazon is that amazing success story, ipo's at about $18 a share, goes up to about $50 a share during the dot com bubble and then an online bookseller and goes down to about $7 or $8 a share after the bubble broke and a lot of people were dismissing this business model and a lot of other dot com, and from $7 a share it is now where it's trading today. it is remarkable.
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again, it's not in the dow jones industrial average because of the way, because of the way the stock, they have some formula to get in there based on stock price and because its stock price is so high, it's not in the dow jones, so, the theory is and that's why it's trading up, is that if they do the stock split, like a lot of traders are saying it's coming in 2021 and maybe thursday, again, none of this is guaranteed, amazon had no comment i'm just giving you market color here, if it does happen, that makes, that means more people can buy the stock, it's in the dow jones industrial average. the market value of amazon will go up theoretically and so will bezos net worth, that's why you see him pulling ahead of elon musk today. just by probably a couple hundred million dollars, i guess , right? but what's a couple hundred million dollars for these guys, right? liz: [laughter] yeah. it's just conversation. charlie, you know, apple split the stock, tesla split its stock
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-- charlie: for all the same reasons. liz: there are these moments in time where it could really be happening. charlie: that's a great point you macon apple, liz. they did it to get into the dow jones as well. so, and it helped and it helped the market so there is obviously a whole, it's not outlandish to think they are going to be put in the , that they are going to do a stock split just given where they are. i can't guarantee timing i'm just telling you what traders are saying, investors are saying and again the speculation is it could be, you know, as early as thursday when they announce first quarter earnings, but again, none of this is confirmed it's just informed speculation. it's heard on the street, i used to write that column when i was at the wall street journal. back to you, liz. liz: okay, the stock is jumping $77 now, amazon on the move up 2 and one-third percent, thank you , charlie. do you want the good news, or bad news first? we'll give you the good news. a big number of adult americans
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are now fully vaccinated and ready to travel again. the bad news? airlines are already facing their next emergency situation. this time, in the cockpit as baby boomers hang up their pilot wings at a torrid pace we're taking you live to pilot school on the campus of western michigan university on what airlines are doing to fill the void. closing bell ringing in 36 minutes oh, boy the dow what did i just tell you it was down but trying to get up for a second there it was down just one point and now it's back down 11 nasdac up 133 stay tuned, the s&p 500 is at a new intraday all-time high. (vo) while you may not be closing on a business deal while taking your mother and daughter on a once-in-a-lifetime adventure — your life is just as unique. your raymond james financial advisor gets to know you,
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that's 1958. [voice of male] the chili bowl really has never closed in our history. when the pandemic hit, we had to pivot. and it's been really helpful to keep people updated on google. we wouldn't be here without our wonderful customers. we're really thankful for all of them. [female voices soulfully singing “come on in”] we love our new home. there's so much space. we have a guestroom now. but we have aunts. you're slouching again, ted. expired. expired. expired. thanks, aunt bonnie. it's a lot of house. i hope you can keep it clean. at least geico makes bundling our home and car insurance easy. which helps us save a lot of money. oh, teddy. did you get my friend request? oh. i'll have to check. aunt joni's here! for bundling made easy, go to geico.com hello?!
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this? the corn and the corn poppers, yes, the popcorn makers are today's pop stocks, you know, it was that psa, that public service announcement, with real theatre workers playing last night, it was super reopening enthusiasm that hit the red carpet at last nights oscars spilling over on to the big screen stocks look at amc it's up 15.25%, as theaters all said welcome back, during hollywood's biggest mark, cinemark better by 4.5%, but getting an even bigger bounce at this hour, casper, springing to its best intraday gains in more than a year after wedbush upgraded shares to outperform, casper up 29% right now, as wedbush predicts it'll take more market share that broadens its product lines and of course the demand rush from new homeowners keeps the mattress market wide awake and we should also check on the
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traditional names here, sleep number and purple innovation, sleep number right now is up 1 1/3% resting easy but tempur and up ellyn novation s, losing three-quarters of a percent, luminar taking laser focus from the roads to the sky, the stock is soaring 14.5% right now, on news it's joining forces with airbus' autonomous flight tech unit, up next. the focus of the partnership improving safety and increasing the number of autonomous flight vehicles in the market. nice move for luminar. airline stocks let's look at those taking off after eu officials say vaccinated americans should be able to travel to europe by this summer. everybody is higher except for southwest at the moment which is basically flat but as travelers get ready to pack their bags and go off, where, from sicily to who knows where, to pack their bags, the airlines are fast-approaching new
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turbulence, to grady trimble live at western michigan school of aviation one of the top pilot schools in the nation, grady? reporter: sky high demand for pilots right now, too, liz, in fact the industry is expect ing a shortage of some 12,000 pilots by 2023, and that's just here in north america. if you look across the globe it could be 50,000 pilots, so i guess if you're a college student like my friend nate whose a student in this program it's a good time to be graduating and you graduate actually in about a week. you're going to stay in school, get your mba, and be a flight instructor but you're part of united's aviation program which essentially guarantees you a job when you graduate. >> yes, it has a partner program your flight instructor at western when you get your qualified hours and move into the regional carrier and get your hours there you have a right with united airlines. >> united has started its own flight school and hopes to hire 5,000 pilots from there, by 2030
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, and another 5,000 from programs like this one. you said you've basically been courted by all of the major airlines because they can't hire people fast enough. >> yeah, so it's a huge pilot demand right now so an exciting time to be a part of aviation right now and it's a great time to be part of this. reporter: we wish you the best of luck. it sounds like an exciting time i hope there's no bumps in the road because i'm sure a year ago this time you were nervous about the prospect? >> yeah, the pandemic changed a lot of things, western michigan handled great and a lot of other airlines did, united especially and we're back on track now, flying quite frequently. reporter: you got behind on your flight hours actually because of the pandemic school had to shutdown, but how are you doing now? they have all these planes for you to get your hours and it seems like there's plenty of aircraft here. >> yeah, short pause about four months but we came back in and i'm back on track now back flying and i'm excited i've got my last check at western coming up may 11. reporter: so liz, air travel is back in a big way at least from
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a leisure perspective. we'll have to wait a little bit longer to see if work travel comes back and because of that, the airlines hiring those pilots and by the way, they're also hiring mechanics which they do here at western michigan as well they train them too. liz: jobs, jobs, jobs, and good paying ones too it's great to hear that. grady trimble, thank you very much for that. you know, a lot of people dream of becoming pilots. get over there and learn how to do it. nft is taking over the crypto verse, but up next, what's hooking you into the newest non-fungible friend? forget non-fungible.com founder dan kelly has your guide to playing the digital real estate game to perfection, some people are making millions, trading these virtual parcels of land. we're going to explain how and where you do it. closing bell ringing in 28 minutes, nasdac losing just a bit of steam here, still at 98
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i got this. usaa insurance is made the way kate needs it - easy. she can even pick her payment plan so it's easy on her budget and her life. usaa. what you're made of, we're made for. usaa. liz: okay, can we just look at a dow intraday because one minute, it was within one point of going positive, and then you can see we saw a sudden big drop, far right side there, couple of things we had just seen the s&p hit an intraday high, maybe it's an algorithm thing, some of the algorithms hit the technical and started reverse sell. we also should look at the laggards for the dow to see who is sort of leading the move to the downside, dow 30 names here on the laggards, what have we got here let's check it out proctor and gamble down nearly 2 %, coke down 1.5% walmart down 1 and one-third and travelers, home depot rounding out the top five. from a
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chadwick bosman memorial nft dro pped in each oscar presenter's gift bag last night, yeah, to ellen degenerous monologue and selfies being auctioned off for charity today, nft's are exploding out of hollywood now but there's another asset burst ing from the blockchain making metaverse millionaires at a crazy clip. you don't even know what i just said. i don't even know what i just said. metaverse millionaires, what are we talking about? there's this thing called the sandbox one of the top digital games that sells virtual real estate pulling in more than $19 million in sales a nowas compan om atari to binance to gemini and nft super ecr ector whale shpashpaying up uor m u m u u mr vil land. pixelated lte lte l lut b b tanb anan n't the only virtual real estate seller, selel the centrad stede more than 5llion in saand inn fact, overhe tt pt lo the c ttral land hasan h claimed two of the thehe fivheie
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inin the nfhet d wor $412$400 and $280,000 respectiveec.. what are we eve e e talkiki aut? to theoundf the sitee that tracks theseal, dan kly of non-fungible.com, dan himself sold a plot of his virtual land for more than $100,000. dan, great to have you. just when people were starting to wrap their minds around digital art, virtual real estate sales are speaking. this is land, you can't touch or build anything, physical on, but the hype is very real and the money is real. can you just explain in a nutshel for our viewers what it is? >> virtual land is a place where you're free to build whatever you want in a metaverse much like the internet like a website. you're free to build whatever kind of website you like and you're not bound by building codes and by different restrictions that centralized authorities put on that kind of stuff, so the possibilities are endless in the metaverse.
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liz: but it's fantasyland-type stuff correct? but the money is real. how and why are people paying up big money to not just buy these plots of lands, but then trade them and, you know, i guess flip them for even more money? >> right. i think there's a big play on the scarcity of the digital plot s of land and the central land, i know there are a little bit over 90,000 plots in the world, much of that is owned by the foundation, but these are extremely scarce assets just like bitcoin, there's a very limited supply of them so people are naturally going to speculate on them. liz: well let's just explain a little bit here. the sandbox game is one area and they sell their own digital plot s and there's descent all land but perhaps the money to be made is not so much in buying a land, it's then selling
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it as it becomes more popular so we can give you an example here of one such purchase and transaction. here is decentraland, it's estate number 1,777. just work with me, viewer, please. back in 2019 it was bought and by 2,019, august, that person sold it for 31,000 and change, and just yesterday, he or she then sold it for $280,000. what makes it valuable? >> well, there's a number of aspects. in particular, that particular estate, it's about, it looks like more than 20 parcels big, so every parcel in the land in the virtual world is 16-meters by 16-meters they have a large estate of land, it's by two road s which is that light grey area and also by two very large districts, so there's all these
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different aspects to the location of that land in this virtual world that people give value to. they are speculating there's going to be a lot of traffic in these districts that there's a lot of traffic on the main roads and that's how they come up with these valuations. liz: do you have to be an accredited investor to even start trading these things? >> no. absolutely not. i think that's part of the beauty of blockchain is that you are your own bank and you're responsible for your own actions then there's no, there's just no regulation around this stuff yet , so there's lots of talk about that, as it stands today there's noah credit indication or anything like that. liz: there are, i think, some sites do have it but there is some concern from even people within the so-called metaverse. for example, crypto voxil the founder of one of these areas where you buy and sell virtual. he believes that in a couple of
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months we're really hitting a bubble and maybe we might see that bubble pop. we could see a so-called crypto winter which are these long periods of time like we saw between 2018 and 2020 where prices don't even move, and people could be hurt and lose a lot of money. what's the safety plan? is there an off ramp or an exit hatch? >> no. i mean, and especially an nft, where like ethererum and bitcoin during the crypto winter it was easier for people to get out of their positions. nft are fairly ill-liquid meaning they are hard to sell unless you're selling it for a great price or that kind of thing, so it is extremely high risk, and if we were to come on to something like that, then it be difficult to offload these lands quickly. liz: well, yeah, and quickly, before we end here, how do we know that this won't become with all kinds of fraud?
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>> we don't know. i think that part of the beauty of the echosystem, everybody has to keep everybody else in check. i mean, obviously, we're not claiming fraud against like the decentraland or crypto or anything like that, but when it comes to peer-to-peer trading people need to do their research and come to non-fungible.com and find at least what they're buying is within the market range of what those offerings are typically selling for. it's all about making informed decisions and being responsible i guess for your own actions. liz: yeah, just don't sue the rest of the taxpayers when you lose the money. dan, thank you. it is a brave new, i can't even say world, metaverse, brave new metaverse here, with digital real estate. thanks for talking to us about it. dan kelly, founder of non-fungible.com. we are coming right back the dow down 42 points right now.
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all week.now! liz: well, first it's the chip shortage rocking the globe, and now, hitting the shores of hawaii, the car rental market in some of these hottest tourist destinations, including the island paradise, taking hits due to lack of supply. that has sent prices soaring to $700 a day in some cases for the rental price of a single car, right? well, getting the blame for the shortages the ongoing semiconductor crunch which stalled new car production and fueled demand for used cars which were already in short supply due to the pandemic demand. the car rental beneficiary of this is u-haul and ryder trucks they are resorting to extreme measures, these are drivers, desperate for wheels, extreme measures of renting, well, not
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just the vans. heck the vans are all rented out they're taking u-haul themselves , especially in hawaii and florida, as we look at the car rental stocks, hertz and avi s are popping today hertz up by 5%, avis better by 2.7%. let's bring in the host of " kudlow." larry, listen, planes, there's a shortage of pilots and now we have automobiles which we knew there was a shortage of anyway, due to the chip shortage but does this mean, now that people are going around in ryder trucks just to see tourist sites, that we really do need to have the government step in and deal with the chip shortage. >> larry: well, you know, it be nice, liz, if the government stepped in, and stopped assaulting investment by the private sector, okay? so let's say you want the companies, the semiconductor companies, to produce more, and you want them to throw in more r
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& d because america has, you know, we've got a ways to go as far as the advanced chip designs, okay? this is a private vector venture or it should be, so why we experiencing the largest corporate tax hike and the largest capital gains tax hike in history? by the way the capital gains tax hike is the second corporate tax hike, so, no amount of federal government subsidies, i mean, they're talking about $50 billion for the chip sector, the republican alternative is about $30 billion, all right? i don't like picking winners and losers, and i think there's always a lot of corruption in which companies get what, based on campaign donations, but putting that aside, take a look at the numbers, liz. the vast over well overwhelming bulk of investment in those sectors comes from the
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private sector every time unless you're china and we're not china, so now since we want private sector investment why are we taxing it literally taxing it to death? that's a question that needs to be answered. liz: just last week we had t. j. romers who founded cypress semiconductor who says there's absolutely no reason for government to spend 50 billion on these companies who should fix their own problem he of course is a big libertarian but i would say there is government incentives when especially in certain states these guys want to build-out fabrication plants and they get nice cash. >> larry: i'm okay with that, liz, by the way if the states want to do it, you know, like bringing the taiwan semiconductor to arizona, for example, and i think oregon, i might be wrong about oregon. i'm okay if the states want to do it. that's up to them, and they need to pay for it. i'm not okay when the government gets involved, because picking winners and losers has never
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worked. they tried that during the obama years, it didn't work, and of course, president trump, look, there was a battle about subsid ies and he ultimately rejected subsidies. just saying. liz: good to see you, larry. we'll see you at the top of the hour good stuff, larry kudlow we are coming right back, remember, tesla earnings after the bell.
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♪♪ [announcer] and this fight is a long way from over, leonard is coming back. ♪♪ ♪♪ ♪♪ ♪. liz: so charlie gasparino just broke the news, at least his scoop that amazon may at some point announce a split, right? you see the stock popping right as he put that out at 1:29% eastern time. heading into the close the stock is still up about $70 a share. potential stock split maybe, who knows, joining the dow. speaking of amazon, do you buy the stock or buy the stock of amazon's landlord? our "countdown" closer says that is the one he is going with.
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gus gecko, hudson valley investment visor ceo is here to tell us why. who is, reveal it to our viewers amazon's landlord? >> investors are looking at the following, prologis. they're looking at the last mile. there is a lot of technology from private equity and whole host of other areas. this is one of the stops in that bailiwick. they were the ones that get it to you. they actually have more technology in that warehouse you can ever imagine from 10 years ago. great through-put. right now because of supply demand shortages right now you're seeing more and more inventory trying to get placed into these warehouses to get out to clients and customers. liz: yeah. here we go. we're looking at prologis. three month picture i would say gorgeous. it obviously was struggling on the 9th but you can see it really came back here. it has a yield of 2.2%. so the dividend is certainly not but at its 52-week high.
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why do you say buy it here? >> well you have that supply demand imbalance as we saw before. right now we're talking about computer chips. talking about pilots. there is a shock to the system in terms of demand. people cut back in terms of covid in terms of supply. talking about warehouses this is a beneficiary. you will see there will be more space taken by more companies and want faster turn around. prologis condition actually provide that there are other companies as well. this is the king of the castle so to speak. >> also like nvidia, chip maker that makes sense. southwest airlines that also makes sense as we see a big return to travel. quickly, what do you expect from earnings season? outs here over all? >> we expect that pro companies we follow. they're beating expectations. the big thing on the cost side. you will see costs increase. they're not passing along all of them so some margin
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deterioration can be expected but we believe the whole market can see an uptick in revenues. better than expected and earnings better than expected. [closing bell rings] liz: gus, great to have you. the s&p looks to close at another all-time record. tesla earnings report after the bell. we're cumming back with "kudlow" ♪. larry: hello, welcome back to "kudlow." i'm larry kudlow. great to be with it you. two big tories in today's "wall street journal" what wall street is telling us about the u.s. economic route look, that is one. the west looks past covid-19 and sees economic resurgence. that's another. i thought the first story, they're both important stories, don't get me wrong but i thought the first story was a little soft. yes, it credited government stimulus and vaccines for the booming economy. i don't know. the stimulus is so short-lived. it did note how prepandemic we were producing strong gai f
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