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tv   Barrons Roundtable  FOX Business  February 15, 2025 10:30am-11:00am EST

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these ai generated masterpieces are up for sale prices ranging from $10,000 to 250,000 but not everyone is on board. artists are against the auction writing a letter claiming the technology behind the works committed mass theft. nearly 6000 signatures on the letter. we will be following all of the latest ai news on mornings with maria six-nine eastern here on foxbusiness. i hope you will join me. i will see you on the fox news channel. "sunday morning futures" live it this weekend with exclusive interviews with special envoy to the middle east house gop congress chairwoman lisa maclean and the founder and ceo of animal industries. that will do it for us here on foxbusiness. have a great rest of your weekend and i will see you next time. >> barron's round table sponsored by global x ets. ♪
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>> welcome to barron's roundtable where we get behind the headlines and prepare you for the week ahead. alcohol stocks are getting hammered. we will take a look at what is behind the dip and if there is a road to recovery. we begin with our expert panel on three things people want to be thinking about right now. my colleagues ben, elizabeth and andrew. range bound market. what does that mean and how do we get out of it? >> it looks like a great week for the s&p 500 up 1.5%. we are seeing a market that does not want to go anywhere. it keeps dropping a little bit. the market dropped to the bottom of the range and then went right back. at the end of the week and try to hit a new high. an intraday high. could not stay there.
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uncertainty about inflation. uncertainty about the economy. uncertainty about donald trump's policies. i think it is just keeping the market running in place for a little while. >> a lasting for quite a while. a lot more drama out of washington. >> we seen this kind of thing before. in 2014 we had it stuck where it was nothing for almost eight and a half months. the market dropped 10% in four days. it may be something that surprises us. it comes out of nowhere. it will be something. >> i want to hear about something called app loving. this is not a day being -- dating service. the stock jumped 24% on earnings this week. a double-digit percentage gain after its past five earning reports. what is this thing and why are investors going bananas for it? >> a crazy week for earnings. stocks jumping 15%.
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things are dropping 15% by kane's brands. but then you get this stock which i don't know anyone that actually understands what it does except for the people that use it. i've a friend in the gaming business that says this is really important and it helps developers get their apps out to market to make money from it to get in front of the right people trying to talk to people about it is really hard. they keep coming up with new ways to make money. earnings doubled in this quarter the stock was up 708% before the earnings came out. it jumped to 35% in the weeks. >> it is a great stock. nobody understands, but it is doing something right. >> elon musk dominating headlines for his white house work. tesla stock ran up right after the election. it is slumping a little bit, what is going on. >> people hold that donald trump would reward musk by may be easing autonomous driving
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restrictions and regulations. the earnings report was disappointing last month. investors also worried that he may be spending too much time on his tran efforts in washington and not enough time on tesla. this could lead into a lot of 2025. alienating, voters and car buyers. >> the electric car buyers. >> it is almost cyclical. when they worry about it being a car company at drops and when they are excited the stock goes up. >> now into a tech play rather than a car play. the key thing that people will be looking for this year will be the development of the business which they have not really provided much detail. >> that is a catalyst you need to get the stock moving. >> not sure how much we will get particularly at tesla. interest in the new low-end car the 30, $35,000 car coming out this year.
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we will see what that looks like >> elizabeth, t-mobile has been a great performer. i thought i saw a commercial about t-mobile teaming up with elon musk star link. tell me about that. >> they made a splash without announcement. partnering with satellite starling to provide phone service. owned by spacex which is elon musk company. consumers are, you know, intrigued by this idea. no more dropped calls in the basement or on the hiking trail and et cetera, et cetera. >> ivan apple watch that has a satellite being. stuck under the tree in the what i can still make a phone call or something like that. is it that sort of thing? >> it is sort of that sort of thing. ast space mobile is a way to play. the only pure play company. they charge for your service, the apple watch does not. >> star link, spacex is
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privately held. you can buy into. >> that is a pure play. the big question for them is our consumers willing to pay for it when you can get, they are charging a monthly subscription or a day pass. will people be willing to pony up for that when they can get basic activity for free from other providers? >> rolling out star link in their planes and see out works there. >> thank you all. this valentine's day, stocks getting dumped. research affiliates founder and chairman explain where ya headed? susan: where am i headed? am i just gonna take what the markets gives me? no. i can do some research. ya know, that's backed by j.p. morgan's leading strategists like us. when you want to invest with more confidence... the answer is j.p. morgan wealth management
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jack: it is no fun getting dumped especially on valentines
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weekend. my next guest says there's an upside for investors when it comes to companies getting the boot this holiday. research affiliates recently researching investing in stocks that have been dumped from indexes. they have been outperforming their replacements by a lot. research affiliates and founder chairman rob arnot joins me now. i thought the time to get excited was linda stock was about to join an index and you say pretty much the opposite. tell me about that. >> if you can predict when it will get at it you have a short-term pop. that is quite impressive between the decision to add it in the actual addition of the stock. stocks that get dumped, i like to use the analogy of human relationships. we wrote a paper last year next to the upside of getting dumped. more people get dumped on valentine's day and new year's eve than any other days of the year. [laughter] >> i'm sorry.
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go on. >> not to laugh at people but the simple fact is, most of us have been dumped and if you are dumped, you have a choice you can wallow in self-pity for life where you can learn some lessons , try to make better choices, try to be a better person and get on with your life the same thing applies to companies. companies that have been kicked out of great indexes like the russell 100 or s&p 500. i often joke they go on to achieve great failure. they're all priced as if they would achieve great failure. kicked out at low valuation multiples dirt cheap. they are small cap. when you compare this with small-cap value, you find that the deletions are small-cap value and outperform small-cap value quite reliably. what is interesting there is most small-cap value stocks have never made the cut. never been in the top indexes.
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companies that have been in can learn lessons from the past, lessons from their mistakes and regain mojo. companies that have never been there may not know how to gain that mojo in the first place. what we find is that stocks kicked out of russell or s&p or nasdaq, over the five years after they are kicked out, outperform the indexes that they are kicked out of by an average of 5% per year for five years. that is a big margin. jack: time to show some love for the dumped i guess. >> if you have been next, i think it is time to consider investing in the next index. jack: let me ask about value indexing in general. pointing out value stocks look attractive. i keep seeing the same pricey tech stocks running up. i see a lot of nonsense working out there. giga chat is up thousands present. hundreds of millions of dollars.
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the representative -- it tokenized masculinity. tokenized masculinity whatever that is. when does the nonsense on wall street stop working and when to be get back to the glory days for value stocks? >> bubbles have a bad habit of lasting longer and going further than anyone expects. that does not mean you have to ride the bubbles. if you don't have confidence that you will hear a bell chime when it hits the top, then why try to pick up nichols in front of a steamroller when things are pricey. just move on and be patient. the nonsense prevails on wall street all the time. there is always some sort of nonsense going on. some sort of sad that is happening. that creates opportunities. one of the things that i love to
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do is find asymmetric risks. over the course of this century to date, growth has been value especially the last dozen years. now, that is all well and good, but what is fascinating is that russell value, the earnings, dividends, the sales, the book value of russell value has -- the companies, the value companies are doing fine. the value stocks are not doing fine because they are getting cheaper relative to their fundamentals by a big margin. the top of the.com bubble between growth evaluate-one, summer 2000 -- it is still eight -one now. >> 20 seconds left. we have talked about america's debt. there is a guy named elon musk making some cuts over there at the white house.
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are those efforts enough to move the needle on the debt or are we past the point of no return? what do you think is the outlook here? >> i am a bit of a pessimist. the margin in congress is so skinny they are getting things done. it will be a challenge. i think that the efforts to shine a spotlight on fraud and corruption is very useful. >> great to speak with you. >> thank you. >> does that spell doom or is there an inves
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the way i approach work post fatherhood, has really trying to understand the generation that we're building devices for. here in the comcast family, we're building an integrated in-home wifi solution for millions of families like my own. in the average household, there are dozens of connected devices. connectivity is a big part of my boys' lives. it brings people together in meaningful ways. alcohol stocks getting plastered
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as americans are consuming less overall. young people especially say they are concerned about the health risks. just last month the surgeon general called for alcohol makers to include a cancer warning on labels. the baron's coverage story this week. this to me looks like a long-term slide for alcohol. >> alcohol sales were up during culvert. they have come down since then. problems with younger drinkers. heavy drinking among those age 21 bofors down pretty sharply. i think drugs are an issue. marijuana is very popular among millennial spirit. >> they say even moderate drinkers should stop. asking what about someone who drinks one or two drinks a day. >> we have rfk junior of course the head of hhs. he wants to make america healthy again.
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going after processed foods. you can see a potentially becoming the tailwind. >> you think maybe there could be like an anti-alcohol nudge. on the other hand they say it is a huge job creator and many many congressional districts so maybe not. what do you think? >> i do not see it as a huge priority in congress. >> people call alcoholic consumer staple. it looks like in industry and manage decline. >> they have gotten hit hard. johnny walker, the stocks down 25% last year. 50% from a high. valuation about the whole industry. investors are starting the price your stocks with very little growth ahead. >> i'm finding the blood pretty interesting. being a little too woke. it is been a few years now. it is an american brand. it is made by constellation
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brands. >> bargain-hunting going on. brookshire hathaway taking the constellation brands as one of his investment people. >> constellation about decent growers very well with corona and modelo. they got hammered on the last earnings report because there was slight volume. >> stocks about 25% this year. i think it is probably in the red so far. >> that one has taken a beating. cheap enough to buy. >> the stock is down about 60% with ties of the hardest hit companies. it is famous for his best-known brand jack daniels. frank sinatra's favorite drink. sinatra select. costing over $100 a bottle. i am not sure how well that is doing. stock is looking more interesting right now.
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around 15 or 16. >> you have to age it. you can really run into inventory problems. whiskey fans will find some bargains right now. it seems like the hottest thing in alcohol is nonalcohol right now. tell me about that. >> that is growing. it used to be you had to order off the menu. now we have these robust cocktail menus. in some stores nonalcoholic beers are making up about 10% of all beer sales. >> a pooh-pooh of nonalcohol. you have been. >> it's all of these nonalcoholic drinks. >> the new beer is different. athletic ruling. one of the fastest out there. you have tried it. i like the beer. let's hear your review. i want you to enlist at least
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three flavor or sent notes. >> there may have been some wheaton the ipa. the wild run ipa is good. i would not say it is a compromise. >> definitely a compromise. >> we like it. >> he has not tried it. >> we talked about constellation what you make of boston beer. a company that has his huge hard filter craze. some of those drinkers are now switching over. what do you think about that or any other values? >> i think it could be interesting. having a decent earnings report. i think the coors light is a leading light beer in the country. the french maker of liquor. it is only trading about 15 times.
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>> fancy monopolies. >> they mix it up as another brand. pretty well run. jack: jpmorgan jp diamond is done with work from home culture an exclusive look at why they are pushing for employees to return to the office full-time right after this. >> i've been working seven days a week since culvert [sofi mnemonic] can a personal loan unlock your ambitions? oh yeah. borrow up to a hundred thousand dollars to consolidate bad debt and save money for your next goal. take a swing at your kitchen reno... meant that literally. or design your actual dream wedding. consolidate bad debt and fund all your ambitions with a sofi personal loan. go to sofi.com to view your rate. sofi. get your money right. [ car engine revving ]
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the neighborhood is their life. wonder who's visiting the burkes. that's not their car. hey, guys. who's winning? [ giggles ] now most of the neighborhood uses progressive -for their cars and house. -okay. she didn't ask. ohhhh! [ sighs ] progressive can't save you from becoming your parents. but we can save you money when you bundle home and auto with us. here he comes...like clockwork. [ giggles ] jack: okay, andrew, office occupancy just hit a post pandemic hi. workers are turning those pajamas for khakis. they are going back to their cubicles. jamie diamond is still reeling about lazy workers. let's hear a click.
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>> i've had it with this kind of stuff. i've been working seven days a week since culvert in i commented where is everybody else. don't give me this work from home friday works. i call a lot of people on friday and there's not a person to get a hold of. jack: that was just talking to a hot dog cart outside. [laughter] maybe or maybe not. where was that clap -- where was that clip from? >> he has this three day in the office and people abuse it on friday and do their personal business on friday. he was actually out in ohio at jpmorgan town hall with employees. he was more outspoken and more profane as the clip indicates then usual. he talks about a number of other things. just the importance of culture. down on some other corporate practices. employee performance reviews are often bs and provide very little value. and, so, he took a pretty strong stance. jack: i know you're waiting to
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tell people how many days of the week you come into the office. go ahead. let's hear it. >> e-filed the story it and 45 last night. >> i work nights and i'm generally in five days a week. >> only five? elizabeth, give us a stock that we should be looking at. >> fresh at. they sell fresh refrigerated food for dogs and cats. >> sounds expensive. >> it is. >> but people are buying it. >> nearly half of all households have a dog, a third have a cat. expecting revenue to increase 20 % in the coming years. bet on pets. >> that is the kind we use. you have to have two fridges. one for the dog food. the dog food takes over your fridge. >> i do not even want to know. it is crazy expensive. give us a stock. >> jamie diamond my hate zoom calls. the stock is down since the
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culvert peak. earnings are starting to turn around. it is much cheaper. and at times earnings. it is now 600 times. they have virtual call centers and things like that. it has been going sideways for about two years. if things are good it could break out here. >> not using it personally. just a stock. then, elizabeth, andrew, great ideas. thank you. check out this week's edition at barron's round table. don't forget to follow us on x. that is all for us. see you next week on barron's round table. ♪ larry: hello, folks, welcome to kudlow

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