[laughter] >> may be to start the new year on. look thank you very much indeed to guy benson to richard fellow that is it for us this week i was back in next week with more interviews right in the beginning of 2022 right here on the wall street journal at large were thank you very much for joining us have a very, very happy new year. ♪ ♪. jack: welcome to a special year end edition of barron's roundtable this week will look at past today's headlines and focus on the airhead i am jack otter. coming up former google ceo eric schmidt sounds the alarm on china and artificial intelligence and why he says misinformation will be on the rise. later, stop content top stock picks from andrew berry. this week will begin with a

look back at some of the investment suggestions we have made over the past year those were glad we did in those we wish we hadn't among them famous a fitness company a popular clothing retailer, and a leader in fragrance and beauty brands. on the barron's round table ben, carl english and jack hough. jack, you and i have often talked how we think the peloton hardware was a little more interesting than the stock. we took to add pelt on to the honor household we watch the shares fall 74% since you urged caution back in february pray. >> we are peloton buddies these are my shoes i put these on is a two-person job does that say something bad about my fitness? mine is having soreness at areas like to talk to but after the show but let's turn to that stock. back in february, peloton had beaten revenue with the shares of the client i pointed out two things, one about the valuation. it had posted one quarter the stock market value of what

netflix barely 1% of the subscribers it was expensive. the upside revenue surprises were getting smaller. we were cautioned 75% the business is really not a disaster, revenues during subscription is up within the supply chain problems in that fiscal comparisons with the year ago are well understood. the valuation is close to reasonable. i would just hold out for seeing what peloton can do beyond bikes. i think connected fitness customers want to get multiple machines they could put on the same subscription. i think peloton is at a slow start and treadmills at sea licking the precor acquisition in 2021. >> is also possible take over canada could be reason apple or nike would want to use those users to their membership. we hold ourselves accountable here barron's roundtable will also cite by the pics that were not so hot. jack, you said you thought facebook will be the top-performing tech stock in 2021 for. >> yes i got that out loud i

should've kept it to my inner monologue. the answer is no end. facebook called meta platforms its return 25% it's a little ahead of the s&p it's also beaten amazon and tesla. but jack, look at some these others off about his beating it was 40% is what microsoft from 30 points. i think you have to include video that's beating facebook my more than 100 points. i am not making any predictions about what the stock will do what the company will call itself a year from now. [laughter] thirty-seven carlton pat yourself on the back for calling attention to a firm early this year it is done very well but i've got to ask you how does it make any money? the firm lent me money to buy that peloton and literally is not charging a penny and interest-free. >> when you look at the firm they're counting less one of those people not bring them to keep up with the payments they promised to do. now, the stock as you point

out did very well the back half of the year. buy now pay later become a very hot space in 2021. but a hot space also becomes a crowded space bar to going to look at firm in 2020 to competition. super excited people are signing up for this by now pay later deals but eventually that check comes due. i would tread carefully here for. >> it's tough for people to realize is just credit like any other. one you wish you could take back suggestion people fall into the gap stock. >> maybe fall out of it. i was excited about this one as a turnaround play, a reopening player back to school play. none of that really came to pass in november the company cut its forecast. he goes to show retail is a really challenging space. it was before the pandemic and is going to be after. jack: 's of ben, did you have any special beauty insights when you said back earlier in the year you thought cody would be doing well at that more than 50% and you picked

it. >> none whatsoever. i do know is a turnaround story. here's a company a new ceo that is doing a great job, getting the company focusing on the brand cutting costs look like cover girl and max factor then you had an earnings report that look good but the stock dropped a tunnel and a >> a good time some shares. little did i know the stock would then go up 50% from there. but the stock looks like the stories is still the same kind of thing. silk cutting cost of focusing on good brands i think 2022 good holds or upsides for it. >> one other to talk about is corvo that is a chip company you were bullish on but now investors and got worried in the stock is falling. >> that is right. this is that point in april and the chip shortage was becoming a big thing. we were altering to understand just how major it was for people. they make chips for iphones, for other mobile devices and i feared why not the stock was

doing well look i can keep going. boy was i wrong though. it ran into shortages of its own bread their were issues from the iphones themselves. the stock i think is down around 30% since i picked out. i just went i wish i would've stayed in my wheelhouse on and stayed far away from. >> thank you for that guys. i met former google ceo has a warning about artificial intelligence. he looks fine weiss' misinformation is deep faced, that is next.

>> artificial intelligence or ai is transforming the world for its already playing a willing conveniences like personalized web searches and shopping. the world's superpowers are in a raised use ai for national defense applications and even warfare. drumming out former google ceo and co-author of the age of ai, eric schmidt.

thank you so much for coming on the show. >> thanks for having me. jack: want to start with artificial intelligence and maybe how it touches our lives are not even aware of. what are the ways in which might interact with artificial intelligence and how will that change over the coming years? >> today we look at recommendations or computers as you like this or that, that is an ai system reviews twitter or facebook, the feed you get has been boosted by ai based on what it thanks or preferences are. i will use ai for translation. today's systems are being used for video, surveillance and things like that. he recently came into the country and i was a member of a travel program. all he had to do was show my passport and it said who i was. these are all examples of ai begin to touch our lives.

largely in minor ways compared to what is going to happen. jack: some things you mention are great some are a little concerning start with the concerning. you mentioned algorithms. often they are set up in such a way as to amplify outrage or give teens images are said to be harmful to them. can you talk a little bit about why that happens that way and if there's anything we can do about it? >> let's think about how social media works by the companies are for-profit they want to make money. they make more money when people use their system more, that makes sense. how do you get people to use the system more? you enrage them. you enrage them on anything. the reason people do that or companies do that essentially is that we know people will transmit and share emotional content much more broadly much faster up to seven times faster than well-thought-out arguments. so we should not be surprised

at the system that are really early in their development if you think about is a social logical matter that they drive for outrage. there's a potential with ai let me explain how this works. in ai system can learn what you as a human being prefer. i like this, i don't like this but in prejudice about this i'm not prejudiced about that. i believe in this i don't believe in that. it can amplify it. i think there is every reason to think unless we can come up with some public policy rule, the weight we live online will get boosted, and boosted, and boosted by the ai systems that will drive this for it's not good in my view for democracy. >> another thing you mention coming in the country is benign but governments can use it or to track people and more nefarious ways. is there any technology companies can do to push back on that? >> it is difficult. china is by far the leader here for their technology is

generations ahead of everyone else. even in the west our government for national security and public safety they want to do surveillance. it is very hard to mask your own biology, your own picture and so forth. it's going to get worse in the following sentence. there's something called deep fakes. it has been proven difficult to tell deep fakes have been manufactured. it produces these things that we have never seen the four actresses that look like actresses but are not human things like that. it's going to get much more confusing. one of the proms of the misinformation spaces we know also from human beings that people see a false video and you tell them it is fake the sill at some level believe it because it's a visually strong. i think there's every reason to believe deep fakes in particular misinformation are going to get significantly empowered by this revolution in ai. you might say why don't we

just be on that? the software is generally open and generally free. a review bandit in the united states it would be used in other countries and the internet against us. >> it cannot be un- invented. you mention china being ahead of us is a something we can do to try to close that gap? >> is a bunch of stuff more money for research, more education, better partnerships. the real message chinese is no longer the one building low-quality things. they have really decided to focus on ai, quantum energy systems, sympathetic by allstate a few others. they set a public goal of being dominant in those fields right 2030. it is important that we as a country do not allow that to happen. the technologies i just described are the basis in my estimate and the estimate of my report, $58 trillion of stock market wealth is tied up in the invention of these new

fields. we want to make sure our private sector, or university, our government, our national security the defense department and so forth lazing state-of-the-art. it is crucial for america. >> ten years ago i think most of us but maybe you are an exception, did not realize how central to our lives our phones would be. any since ten years from now is a device or the program will be that might play as huge or nearly as huge of a role in our lives were not aware of now? >> it's interesting as part of the iphone launch the original steve job's. and i had no idea the smart phones would become so important. i think a reasonable prediction is the smartphone will get more and more powerful more part of our lives more and more personal for the next decade. it's not obvious what follows it. many people speculate he will have intelligent rooms and intelligence services. there's so much investment on

smart phone, smart phone apps and so forth. you should think about your virtual reality here meta versus largely encouraging on successes for your phones for the things i am talking about you're probably going to be dealing with on the phone. he probably won't talk on your phone very much but you're going to use a lottery. >> eric schmidt thank you so much really pursue your time. >> thank you so much jacket. >> coming up kickoff 22 with top ten stocks and ideas for investing for yields. we've got their names, next. ave teeth sensitivity as well as gum issues. does it worry me? absolutely. sensodyne sensitivity & gum gives us the dual action effect that really takes care of both our teeth sensitivity as well as our gum issues. there's no question it's something that i would recommend. there's no question it's something in a recent clinical study, patients using salonpas patch reported reductions in pain severity, using less or a lot less oral pain medicines. and improved quality of life.

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jack: the beginning of it airs a good time to look your portfolio in nesser to make adjustments. turns out the list of ten stocks for 2022 as well as ideas for generating income of the new year. parents resident stock picker andrew berry is back to explain part and wrote you've

got two stores want to talk about today. one is on your top stock picks one is generating guildford let's start with your pics. hugh tended toward the values i with names like at&t and royal dutch. >> yes, glad to be back. value has trailed for the last ten years i think 2022 could be the year for value stocks. higher interest rates might help as well as a resilient economy. jack: tells what at&t is headed rough year down about 20% brickwork source doc recently had a 12 year low. the outlook for the company is looking better. it is competitive position in the wireless market is pretty good right now and the merger of at&t warner immediate business with discovery that midyear could be a catalyst the stock now yields 8% and even after that deal is should yield about 6% which is way above a market yield. jack: a different category royal dutch shell energy had a

bad decade but recently as oil prices have come up a bit some companies are doing better. >> royal dutch is one of the best positions of the big energy companies in the world trade at a big discount to chevron and exxon at about seven times next year's projected earnings. i has the largest lng business in the world which liquefied national gas which is a very valuable operation. its network of service stations is also the largest among its peers is also quite valuable. jack: very different pick is amazon generally considered a growth stock by some metrics very expensive. that does not account for the intangibles on the books apart you have to look at eddie different whitesburg. >> amazon is one of the ultimate magnet cap growth stocks trades about 70 times forward earnings it is never cheap and has computing business in the work and that alone could be worth a trillion dollars.

it is the leader in e-commerce. revenue growth could average 20% punch plus a year for the next few years. >> it is a jack hough i see a hertz on your list. a year ago that was a mean stocker. i know this has graduated to a more serious investment. are you going full at this are you a wall street should be putting it all in a parody crypto? most important what do you about hurts here? >> jack, hertz is no longer speculative. this action of the best business now and travel through the rent-a-car at hertz, raking in record profits. they are in short supply anyone renting a car there often wondered dollars a day or more. it's a great balance sheet for emerging from bankruptcy there trades are under ten times and got a big buyback program in place and profitable

initiatives like by 100,000 cars from tesla. >> andra want to ask about your income story bonds are not giving much yield to investors at this point. but you like a master limited partnerships and utility think those are better for investors right now? >> mlp other pipeline companies office of the best yields right now the stock market. six -- 10%. the outlook for the industry for 2022 looks pretty good. volume should go as well as a free cash flow and it offers eight lower risk way to play the energy sector than oil and gas producers. some of the bigger names in the group include enterprise products, williams is a large natural gas transport as well as mpl x. >> are member when mlps were having a very tough time if i want something safer do utilities get that? you tell us when the seyfert sectors in the stock market right now. the industries in in pretty good shape it's a green energy

building out wind and solar power over the next decade. that's going to happen or whether or not we get legislation out of washington. dividend yields are now around 3% earnings growth could be five -- 7% annually over the next decade. you could be talking about total returns of around 10% for companies like entergy, dominion energy as well as xl energy. >> her and her, ben just asked about something safer. i am kind of curious about junk bonds. they always make me a little bit nervous but what is your take on the space right now? >> there's not much yield in the bond market now. junk could be one of the best places to be the average joe's about 5% unit ten or 8% on more issues but have more -- take more risk. this should be very few defaults of the junk bond market this year pretty may earn that 5% and may be a little more.

jack: looks like we've there's more interest rate risk limit credit risk thank you and your always love your insights for. >> glad to be here. >> up next roundtable members give their investment ideas for 2022 and jack toasty new year with the preet cocktails, stay right there. ime, i've comeo add a fourth: be curious. be curious about the world around us, and then go. go with an open heart, and you will find inspiration anew. viking. exploring the world in comfort. we hit the bike trails every weekend shinges doesn't care. i grow all my own vegetables shingles doesn't care. we've still got the best moves you've ever seen good for you, but shingles doesn't care. because 1 in 3 people will get shingles, you need protection. but, no matter how healthy you feel,

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jack: check while with each other 2020 were busy because iq is cocktails and a can. >> check i don't know if you are much of mixologist to my favorite things or drinks are drinking cocktails on and someone else do the work. i spoke with the head of her card in north america she said the hottest trend in booze right now is cocktails in a canned rtd or ready to drink. they are preparing to launch jameis with ginger rail and lime in the u.s.

other market they have jameis old-fashioned the category is growing two 100% year-over-year. as an early adopter of new technology, i do not want to say this could be bigger than the iphone i feel that's kind of a high bar it could be bigger than a meta versus mesh after two or three of them brickwork's carlton at the airhead sectors that you like. carlton have a suspicion you might be going in the financial director brickwork's i've got to when the same for the year. overall banks are looking healthy in 2022 you really want banks that have a steep management diversified were looking at jp morgan in silicon valley why, the gamete grappling with the rate hikes, but also midterm elections are sometimes candace try to drop their base with anti- rhetoric. jack: thanks for that, ben what caught your eye? >> i like utilities i think that price appreciation the utility sector is one of the worst performing sectors in 2020 when they will do a lot better in 2022. >> carlton bennett like those

pics, inject cheers viewers check out this week that parents are, the rest of and or stock picks and for the new year, new times for the shewbread were headed to the weekend starting next week. no more friday evening. you can catch parent roundtables a saturday and sunday at 10:00 a.m. and 11:30 a.m. eastern right here on foxbusiness. that is all for us, happy new year we will see you next week on barron's roundtable. charles manson showed his family values and the beatles showed us why they crossed the road. these are the magical, ludicrous, griz grisly, astronomical. he