we make sense of the quarters and adam jonas explains his sleeper ev pick.p continues to rally. tech tries to bounce back. deirdre? >> yeah, gamestop up from the low $40 range at the start of the week they're trying to recover from what has been an ugly week for them remember, these names led a big 2020 fuel by the pandemic. take a look at this week they are deeply in the red and so far this year the qqq has struggled to stay positive that's where we'll start with managing partner, good morning to you >> good morning. thanks for having me >> so we are nearly two months into 2021. how are you reading the market action tech in particular is a sell-off a chance to buy the dip or do you think ridesing yield will continue to fall on valuations >> the macros are going to continue to weigh, but long term we remain bullish. we look at this as a buying opportunity. >> okay. and i mentioned gamestop at the top. over $120. what a remarkable week it's been what are you reading into this, if anything? we've been talking about it all week can you read anything into it? so

caroline: moving from what is driving it to the outcome, i want to bring in adam jonas of morgan stanley was speaking about the auto impact. adam: it is a short-term blip. i don't want to minimize it, x number of weeks production. if we are having this conversation a year from now you will look back and no one is talking about this chip shortage. they will be talking about the battery shortage, the biden administration's infrastructure project and where taxpayer dollars are going to work there. that will be the discussion. the chip shortage thing is just a blip, with all due respect, and investors are looking way beyond that. caroline: stacy, you told us what was driving this. is it a blip in the longer-term? stacy: by definition, over a longer period of time supply has to meet demand and integrate over the timeframe. that is definitional. yes, it will work its way through fulton i think it is little more than a blip. you have had blips before. we had the thai floods in 2011 that inundated the hard drive class and impacted pc production. those were blips. this seems to be widespread for

. >> and when adam jonas at morgan stanley talks, people listen and they're listening today. r calls and let's do with the two that went higher quantumscape and fisker and adam out with the initial and overweight them and the stocks are up more than 20% up, with quantumscape, bullish on the fact that they had great bb&t technology, or the potential for great battery technology and a relationship with volkswagen that could pay off. remember, quantumscape reports its q4 results on tuesday. and then with fisker, adam jonas says the asset light approach, that's pretty attractive rather they're partnering with magna to build their first vehicle and likely more of their vehicles so as you take a look at shares of fisker, you see that fisker also moving higher, and none of these stocks by the way are anywhere close to where they were after they had their spac ipos in the fourth quarter and then on the down side, take a look at lordstown motors and romeo power. both of those are rated underweight by adam jonas. basically says, look, there's some issues there that people need to take a

jo know if i can wait until tuesday for more morgan stanley's adam jonas initiating coverage of the stockit a sleeper premium electric vehicle play on the other hand, jonas's starting coverage of lords did not town motors at an underweight. $18 is the price target there. that stock getting hit as you see. and amicus getting hit big, down a third today. we end with virgin galactic, delaying a crewed test flight, allowing for more technical checks. >> stock is down about 7%, but still trading well above $50 a share, and we've seen some dramatic news since the start of the year there was a flight with humans on board that was supposed to happen in december, but pushing now. some folks that follow this stock are watching closely you need those tests to happen for service to actually launch but this is part of a broader conversations. >> a big setback or not? >> not a big setback, but still unclear when specifically we'll see that test flight happen. it was expected to happen as soon as tomorrow it seems like the timing is shifting, how much it's shifting to the future, we'll very to find out

taylor: i was speaking with adams jonas, auto analyst at morgan stanley and he was saying a year fromng to be talking about the massive battery shortage. do you see a battery shortage? are you working to solve that? jagdeep: i couldn't agree more. i bet there is absolutely shortage. there is a bad shortage now. tesla has gone on record saying the biggest obstacle is battery supplied to scaling up. some have said they are going all electric in mid-2020, so these are very tight timelines. you have to realize a single car, the high-end tesla, uses the same number of batteries power as 12,000 phones. it is more demand than we have had for consumer products. in a nutshell, it is the single biggest issue. and also, how we can quickly turn production to meet demand. taylor: there has been a lot of focus on texas this weekend the fact that, while wanting to shift renewable energy is hard because you can't stored and then, batteries come in. can you give us perspective on battery usage as a way to storm into a bull energy when there is deep demand like we have seen this week? jagdeep: your poi

possible manipulation and later, morgan stanley's call on evs you're going to want to hear what adam jonas is saying about names such as fisker and quantum scape and all of those battery makers that we're trying to sort through. many more continue to go public, often times through spacs. >> indeed, guys. we'll focus on dis tney though start things off pretty nice round of target increases. jpm 220. credit suisse 218. it is pointed out that it took netflix nine years to get to 95 million subs and it has taken disney 14 months. >> it was a joyous call but they did not change the fiscal guidance and you do want to temper things a little after this gigantic run. it is really very hard and david, i know you staten islanded this company for a very long time, it is very hard to find a company that can make so much money when most of it is closed >> yeah, i mean to your point, cruise ships, obviously, the theme parks, have not been open in many places, or sporadically, and not to capacity, and then their movies are not being seen in movie theaters so those are the three components of disney that h

on the ev front, jim, david mentions exxon certainly huge news i saw yesterday adam jonas and morgannley took tesla to 880. and then nxpi, i know you would have mentioned it otherwise, but huge tail winds in mobile and auto >> it was good read my stock trading. you front me nxpi is one of the stocks i recommended. to be able to play -- nxpi, very linked to auto auto is coming back. i have norfolk southern on tonight. auto is coming back there. one of the reasons why it was, as you know, was it got caught up in some incredible takeover chatter that made people feel like it was done obviously, david, nxpi was never done they except engineering. they're looking like the number two player now when it comes to internet of things to sky work solutions. congratulations to the management team. look at that stock isn't that better than owning -- i don't know, let's say a company that sells a hard xboxs? >> or the games that go in them. you know, it is funny. of course you say caught up in takeover chatter they were supposed to be acquired by qualcomm qualcomm probably regrets they waited and

." >> nice call from adam jonas at mardi grasson stanley.t's go back to mike santoli for a look at earnings estimates broadly. >> they are speeding higher. s&p 500, the blue line going back to 2015, raced hirer. stock prices tend to lead the fundamentals when it comes to these inflection points. in this rendering it look like earnings forecast are catching up to the stock market but look at this period of time. when earnings raised higher after the tax cuts in 2017 and 2018 and flattened out here as stocks got more expensive relative to those earnings right now if you think the s&p 500 can earn $200 it means it would outperform forecasts by 15 percentage points in 2021. it is aggressive you are still at 20 times earnings that's a give and take on the valuations. >>> mike thanks. still to come, behind the big boom in pet care the pandemic has led to a huge uptick in pet adoption now zoetis is betting demand for its products won't slow down we will discuss with the ceo for smarter trading decisions. fidelity. ♪ ♪ - [narrator] if you're thinkin

again on this, i don't want call it the spac attack on twitter but -- >> we have the joy of the adam jonasng and most prurient and can we say it is right up there with trying to figure out what is going to happen today with disney, we're trying to do so, and you guys are doing it unbelievably well. >> the question, i think there are two questions. do you think that investors should be investing at the spac level, meaning right now, look at churchill for a second, or do you think that the better investment is to wait and see what they buy, and then buy on the other side of the de-spac? it seems to me, i will tell you, that buying on the spac is not a terrible idea, and most of those folks have actually made a decent amount of money not like the sponsors of course. on the de-spac side, on a relative basis to an, to an ipo index, they actually underperformed >> andrew, your piece was the best on it i know you also were informed by the excellent michael semblas analysis because you mentioned it in the piece. >> he yes. >> yp morgan. >> yp morguen. >> there's no distance between you and me that